The context
The client was an experienced high-net-worth property investor purchasing the asset through a limited company. The 61,700 sq. ft. mixed-use complex comprised leisure and retail space and generated approximately £920,000 in annual rental income.
The property was fully let at purchase, although several tenants were holding over. The client’s longer-term objective was to align leases with the expiry of the anchor tenancy in 2029, creating a potential route towards vacant possession and future residential redevelopment.
The proposed scheme had an anticipated gross development value of £173.5m, making the acquisition an important part of the client’s wider property strategy.
What needed to be considered
The acquisition was subject to a four-week completion window, making certainty of execution a key consideration. A conventional term facility was initially explored, but the timetable favoured a more flexible short-term structure.
The funding strategy also needed to reflect the established rental income, existing lease arrangements, the anchor tenancy’s 2029 expiry and the client’s longer-term refinance and redevelopment plans.
Our approach
With just four weeks between exchange and completion, bridging finance provided the flexibility required to proceed with the acquisition.
An £8.19m bridging facility was arranged over 12 months, enabling completion within the required timeframe while retaining the property’s established rental income.
Alongside the short-term facility, we secured a forward-looking refinance option with a term lender. This was conditional only on successful renewal of key leases, giving the client greater visibility over the next stage of the strategy.
The outcome
The £8.19m bridging facility completed within the required four-week window, enabling the client to secure the property and progress the wider investment strategy.
The asset remained income-producing, generating approximately £920,000 in annual rent, while the agreed refinance route provided a pathway to longer-term funding following renewal of the key leases.
