Last-gasp rescue by SPF Short Term Finance and West One saves £4m shopping centre deal from collapse
SPF Short Term Finance has come to the rescue of an investor purchasing a £4 million shopping centre when his lender pulled its offer post-exchange of contracts. The borrower had just two weeks left in which to complete the deal or risk losing his deposit.
In conjunction with West One, SPF was able to assist the client at extremely short notice, arranging 100 per cent funding, including VAT, within eight days.
Equity was used as additional security and the loan will be serviced from the passing rent already in situ. It was funded at 65 per cent loan-to-value (LTV) across the portfolio.
Amadeus Wilson, director of SPF Short Term Finance, says:
“With the investor let down by his lender at the last minute, it was crucial to find an alternative which would get to the required leverage and transact within the tight timeframe, as his deposit was at risk.
“We approached West One which was able to provide competitive terms and pulled out all the stops to get this complex transaction done in just eight days, including valuations and legals. This was even more impressive when you consider that the client was borrowing 100 per cent LTV with additional security, and the VAT element was also covered by the loan. Our relationship with West One goes from strength-to-strength as we know we can rely on the team for this type of time-sensitive and complex transaction.”
Francesca Kindrat, Head of Operations for Bridging of West One, says:
“SPF came to us to try and help find a solution for the investor who had been let down by his lender. Time was really of the essence but as a bridging lender this is what we do best and delivering a quick turnaround on large complex transactions is where we are able to outperform our competitors.
“With the help of Amadeus, with his extensive expertise and knowledge on the case, we were quickly able to make a decision and overcome any hurdles that cropped up.”