Longer-term Hybrid Bridge/Term Facility for New Supermarket

The Requirement:

A client wanted to purchase a vacant industrial unit in central Milton Keynes, with the intention to convert it into a multi let international / Asian supermarket, that is also sub-divided for different traders.

The Interesting Stuff:

This was a very unique asset that would provide much needed space for the local minority community, to be able to shop in one place, as well as contributing to the local economy. It would also enable local entrepreneurs to set up their own businesses.

As the intention was to do minor adjustments to the property to allow the letting of internal units, we wanted to find a finance solution that would give the client sufficient time to build up the income, prior to refinancing onto a term loan.

Given the nature of the asset – being a vacant industrial unit – finance options were more limited than for residential property. A straight forward 12 month commercial bridge would not have worked as it would a) not be enough time to generate a track record of income to allow us to refinance and b) would have resulted in too little on day 1 with income fully retained.

How we helped:

Utilising a longer-term hybrid bridge/term facility, we were able to work with a specialist lender and get them comfortable around the ability of the client to service the facility after an initial refurb period. We supported the client through video calls with the credit team, and thoroughly reviewed their supporting information prior to submission, to ensure that we were ahead of any questions being asked.