Commercial Property Investment - city centre location with development opportunities
- Location: South East
- Amount Required: £265K
- LTV for entire deal: 70%
- Sector: Investment
LTV represents Loan To Value, where Value is an up to date valuation of the property involved and Loan is the total amount to be lent to the borrower, including the Investor's loan.
Regional Developer client looking to purchase investment property in town centre location. Short term intention is to treat as investment and fill unit with commercial lets under 12 month licences. The area has been designated for future development by the local authority and has considerable development potential once planning has been approved. .
Purchase price is agreed at £1,325,000 and client has 30%( some £400k) to contribute. However due to the nature of the tenants the senior debt is being restricted to 50% of purchase price and there will be an initial reliance on the developer’s existing business to support the borrowing until the unit is filled. This has strong historic income and can service some interest costs if requred.
Investor is be asked to support the shortfall of 20% - £265k with exit in 12-18 months through a refinance exercise once planning is acheived or further discussions would be possible to maintain support through the development stages and completed sales.
Potential income will be confirmed by valuation - property size is 8908 ft sq so the site could easily support borrowing once tenants are in.
Various attachments are available if you can help, including property details, accounts and a client profile.
