Case Type – Trading Business
Understanding the client – The customer had historically owned and operated a self-storage business and wanted to replicate the success of the previous venture. Aspirations to build the portfolio to in excess of £120m.
Project – Purchase of a self-storage operating business including the six property assets spread across the U.K. Mixture of freehold and leasehold assets involved, as well as the trading business.
Challenge – Provide a competitive finance package which would use predominantly leasehold assets as security. Also find a lender who would accept the plan of turning a tired brand into a sophisticated and efficient operation.
Strategy – Deep analysis of historic data as well as forward projections. Presentation of key risks and opportunities within the project. Construction of a detailed credit proposal to the lender.
Lender – Middle Eastern Bank
Initial Gross Loan – £11,750,000
Loan to Value: 65%
Rate: 4% + libor
Term: 60 months
Lender arrangement Fee: 1%