United Trust Bank (UTB) Structured Property Finance has provided a £5.7m commercial investment loan to refinance and subsequently refurbish a 29,000 sq.ft. office building in Stockley Park, West London.
Westley Richards, of real estate debt advisory firm Westrock Capital, approached UTB on behalf of clients BYM Capital (BYM), an established and successful UK based real estate developer and investment company.
BYM wished to refinance the facility used to acquire the building and secure funding for a £1.8m, Grade A commercial refurbishment of the entire ground floor. The works will be extensive and include upgrading the entire air conditioning & ventilation, electrical, lighting and fire prevention systems as well as landscaping the garden area surrounding the offices to meet increasing tenant demand for green space and breakout areas. The design allows for a ‘plug and play’ style occupation for tenants. The GDV upon completion of the works is estimated to be in excess of £10m.
With no pre-let secured for the vacant space, and the existing first floor tenants having only a short-term occupational lease, UTB’s Structured Property Finance team carried out extensive due diligence including research and analysis of the asset looking at current and future demand, existing vacancy rates and possible future supply competition and opportunities. This combined with BYM’s demonstrable track record of successful asset management gave UTB confidence to provide the £5.7m facility required, representing a 56% LTGDV.
The 24-month term gives BYM sufficient time to complete the first stage of the refurbishment and decide on a suitable next step for the upper parts.
Westley Richards of Westrock Capital commented: “From the very start, UTB’s Structured Property Finance team demonstrated a desire to lend and find a solution to meet our client’s needs. They worked quickly to understand the asset and took a pragmatic and commercial approach to the underwriting, taking into account BYM Capital’s demonstrable track record of success in the commercial sector. Their solution delivered what they promised, and I would welcome working with Gerard and the team again.”
Gerard Morgan Jackson, Head of Structured Property Finance – United Trust Bank, commented: “At UTB we work hard to provide solutions that meet borrowers’ needs and rise to the challenge of more unusual cases. We also enjoy working closely with advisors like Westley Richards who assisted us with numerous requests during complex research and analysis, but which ultimately led to us being able to provide the refinance and refurbishment funding required. BYM are experts in their sector with a talent for seizing opportunities, and we look forward to working with Westley and the BYM team on future projects.”