Worthing, £775,000 – retail investment
An off-shore investor identified an office investment with the opportunity to add value by renegotiating the lettings and converting part back to residential use.
ABC provided a facility for the purchase and to provide a period for the improvements to be carried out. It was found that a longer period was necessary and ABC extended the loan for a second year.
Ascot £570,000 – restaurant and living accommodation
An experienced restaurateur purchased the freehold of a redundant public house and created a casual dining, Italian themed restaurant serving the local sporting community. The business had been established but there was opportunity for further improvement. Alternative Bridging has provided a two-year loan to enable sufficient time for the profitability to be proven prior to refinance by way of a term loan.
East London, £2.5m
Alternative Bridging financed the purchase of a redundant industrial building, a bus depot, which has lain empty for the past 40 years. Situated in a high street in what had become a prime trading location, the developer had an exciting vision to convert it into a retail precinct, complete with food court and supermarket, to complement the vibrant retail activity adjoining it.
We were asked to take a view on planning permission as previous consents were inappropriate and had expired and renewal of the most recent consent had been refused as it no longer satisfied the local authority’s requirements in relation to design. By the shareholders of the borrowing company supporting the project with both a significant cash equity injection and collateral security we were encouraged to take a view on this issue and perceived construction risks.
Central London, £750,000 – second charge
A second charge loan advanced by Alternative Bridging secured on a retail parade with residential upper parts. Together with the first charge, the loan totaled 60% of the investment value.
The facility was required to assist with the purchase of the parade and following the borrower obtaining planning permission to extend the upper parts, the investment was refinanced.
A refinance facility of £2.5M was provided to repay several clearing bank loans secured by a mixed portfolio of investments comprising flats, houses and offices some with development potential. The security was complex with over 30 tenancies and the need to amalgamate the ownership of assets into a single vehicle.
The loan is being repaid by a combination of refinance with long-term loans and sales.
London NW8, £3.8m – luxury apartment
The property, an extensive luxury flat close to Lords Cricket Ground, was owned by a non-resident businessman through a series of off-shore companies.
A bridging loan had expired and was due for repayment. The existing lender was not prepared to renew and ABC refinanced with a 12 month loans providing ample time for a buyer to be identified and for the loan to be repaid from the sale proceeds.
Bushey, Herts £540K, regulated residential – 7 day drawdown
The refinance of a bridging loan originally provided for the purchase and refurbishment of a detached, Grade II Listed house. The loan had expired and the lender required repayment and the borrower was in danger of incurring penalty interest.
Alternative Bridging’s underwriting team, alert to the urgency, refreshed the existing valuation and our solicitors relied on our Title Insurance enabling the loan to be completed within seven working days of being introduced to us.
The loan was a great example of what can be achieved when the borrower, broker and professional advisers co-operate with us and each other.
Central London, £600,000
A second charge loan was advanced by Alternative Bridging to enable the owner of a valuable Central London house to take advantage of a significant business opportunity. We were approached belatedly to urgently provide funds for the last element of the financing of a property development in which he is an investor.
The loan included a sufficient sum for interest to be paid during the loan period of 12 months and will be repaid, together with the capital, when the project has been completed.
Prime Central London, £4m
Under its Prime programme, Alternative Bridging provided a short-term loan of £4m secured on a central London house purchased by an experienced investor for improvement and resale. Priced to reflect the quality of the asset, we advanced 72% of value at 1% per month.
Completing the loan in 13 days from it being first introduced, we demonstrated our flexibility, attention to detail and quality of service, responding to changes in the Borrower’s requirement and completing the loan within a tight timescale to enable the purchase to take please after other arrangement failed to materialise.
Alternative Bridging’s recently introduced Prime programme is aimed at high quality residential assets in Prime Central London – the high-value areas located in the London Boroughs of Westminster, Kensington & Chelsea, Fulham and Camden and other prestigious areas such as Wentworth, St. Georges Hill and Ascot.
Alternative Bridging was introduced to a well know property investor to provide finance to repay an existing short-term loan and to fund completion of the project, an apartment hotel comprising 13 self-contained studios together with ancillary space for a café and night club.
The residential investment had been pre-let to an apart-hotel operator under a management agreement and the commercial space leased to a restaurateur and club operator. The loan provided for sufficient time for repayment to be from refinance after the residential investment had been stabilised but in the event an “irresistible offer” was received and the property was sold subject to a leaseback of the residential accommodation.
We have since financed a second apart-hotel development for the same group and refinanced a residential development pending sale of the homes to owner-occupiers and, as a result, our introducing broker has continued to be remunerated.
Cardiff, £2.9m – development site
A diverse trading and development group had assembled an extensive waterfront site over the past nine years. The bank which had provided acquisition finance had failed and its liquidator required repayment.
Timing was critical and the development finance package could not be finalised in the time available. ABC provided a bridging loan secured by the site in a timely fashion which was promptly repaid on completion of the development finance loan.
Southampton, £2.9m – serviced apartments
ABC has financed a programme of serviced apartment developments for a leading operator. A new opportunity occurred for the conversion of a redundant hospital building into 35 apartments and banqueting facilities.
ABC provided a development facility to fund the acquisition, works to date and further funds to complete the project. Following completion of the works, it is likely that ABC will extend the facility to provide time for the income to be stabilised and for the loan to be refinanced on a long-term basis.
Ealing, London, £900,000 – working capital
A family with diverse business interests owned in a corporate vehicle a partially refurbished and extended detached family house. It was unencumbered and Alternative Bridging provided a 12-month loan, part of which will be applied to completing the development and the balance will be invested in a new restaurant being opened by the family.
Repayment will be from the proceeds of sale of the house following completion of the development.
Plymouth £2.6m – residential development
A Devon based developer required a loan to repay an expired facility and to provide for the cost of a substantial redevelopment of a residential investment. The property comprising 15 flats was in need of refurbishment and offered an opportunity for the construction of a further 12 apartments.
A loan of £2.6M in stages was provided by Alternative Bridging for the refinance, refurbishment and development. On completion of the construction, the loan period was extended to allow for sales and refinance. The loan secured by the existing apartments has been refinanced and the developer is now repaying the balance from the sale proceeds of the remaining units.
North London, £1.2m
A land loan was made to repay existing borrowing secured on the property followed by a construction facility to fund the development of 10 one and two bedroom flats on the site of a redundant commercial building.
Alternative Bridging provided a loan equivalent to 60% of the gross development value of the apartments and by working closely with the introducer and borrower, we were able to structure this loan to provide sufficient funds to develop the property and release the borrower’s equity.
The loan will be repaid by a combination of sales and refinance, enabling the borrower to retain part of the project in his investment portfolio.
Leicester City Centre, £1.86m
Alternative Bridging provided an advance for the purchase of a site in Leicester’s city centre which is to be redevelopment for student accommodation. Prior to completion of the purchase, the borrower, a specialist in student housing, had obtained planning permission for the redevelopment and as a result enhanced the value of the property and, because of this, it was possible to lend 80% of purchase price which was equivalent to 60% of the enhanced value.
This project is the first of a number undertaken by us with the same developer.
Hull, Yorkshire, £900,000
A short-term loan was made by Alternative Bridging secured against a substantially completed executive house in a prime location near to Hull. The loan was to refinance a short-term development facility which had expired and to fund completion of the construction of the house prior to sale.
Following previous sales of properties on the site, our solicitors needed to unravel a complicated title where access had been prejudiced which they did to the benefit of both the borrower and ourselves. Drawdown was against a tight timescale driven by a prospective sale and the need to complete the construction to achieve this.
ABC already bring a strong offering to the bridging market, especially in the commercial and development finance areas, which are still both under serviced in my opinion. Combine this with the ability to offer regulated loans and ABC look set for great things in 2014 – a genuinely exciting time for them.– Kit Thompson, Brightstar Financial
“We at Bramhall Commercial have been working with ABC for a number of years now and they have become our number one go to lender. We find their deep knowledge of the commercial property market invaluable in the day to day running of our business. Where many other lenders are ruled by tradition or policy ABC on many occasions have shown themselves to be both imaginative and flexible in their approach to an enquiry, often suggesting solutions or ideas that help my clients achieve their goals.
I wish them every success and look forward to working closely with the ABC team for many years to come.”– Chris Ashton, Bramhall Commercial
“Since I’ve started working with Alternative Bridging over the last 2 years I’ve been very impressed by the level of knowledge & understanding that you & your team has shown right from initial enquiry right the way through to completion.
My deals are usually complex & it’s refreshing to have a lender who looks at a case on a bespoke basis who wants to try & do the deal rather than the norm who look for reasons to not do the deal.
It is a pleasure to work with you; once you make a lending decision you stick with it unlike some of your competitors who agree to the deal & then change the goal posts further down the road when it’s too late to switch lender.
If on the few occasions you are not able to help then you are very helpful at pointing me in the right direction.”– James McDermott, Foster Denovo
“I would like to go on record and say thanks to Lawrence, Stephen and the rest of the team for stepping in to fund our client at short notice once one of your competitors had decided to pull out at the last minute. The deal was far from straightforward so to complete matters within 4-5 working deals is testament in itself to ABC’s diligence and the work of the appointed legal representatives. Thank you.– Steve Williams, Bespoke Personal Finance