FRP Real Estate Advisory has completed a £21m commercial acquisition loan facility with Shawbrook, supporting the purchase of a Cardiff office building with strong environmental credentials.
The transaction enabled an experienced asset manager to acquire the office asset as part of its wider growth strategy.
Corey Dennis, senior broker at FRP Real Estate Advisory, led the deal and managed the process from start to finish, working with the lender and third-party advisers to bring the transaction to completion.
The deal progressed during a period of market volatility, with interest rate expectations changing in response to geopolitical tensions. As market conditions shifted, the team restructured the facility into a five-year term, incorporating a two-year fixed rate.
Commercial acquisition loan restructured amid market volatility
FRP said the revised structure helped protect the client's cash flow position while providing greater certainty over borrowing costs during a period of interest rate uncertainty.
Securing leverage remained a key objective throughout negotiations. Working alongside Newmark, the advisory firm agreed on a structure based on the lower of 75% of VP value or 65% of market value.
“Sudden market changes from global conflicts created additional complexities. However, with close coordination between all parties, we managed the evolving lending conditions, pricing adjustments, and transaction timelines," said Corey Dennis, senior broker at FRP Real Estate Advisory (pictured).
"By pivoting to a fixed rate, we preserved the client's cash flow in a volatile market. I am delighted we were able to successfully deliver this strategic acquisition for the client within the required timeline during these conditions.”
Shawbrook said the transaction reflected its appetite for supporting experienced sponsors acquiring high-quality assets.
"We are delighted to have supported a new-to-bank client with a £21m acquisition facility for this high-quality, modern office in central Cardiff with a BREEAM Excellent rating," said Russell Gaynor, structured real estate senior analyst at Shawbrook.
"Backed by an experienced sponsor, the facility was structured not only to fund the acquisition but also to provide the client with a 2-year fixed rate to support cash flow planning, supporting the client’s wider growth ambitions. Welcoming a new client to Shawbrook on a transaction of this calibre, delivered alongside FRP, Newmark, and Brecher, reflects exactly the type of business we are looking to support through our Structured Real Estate proposition."
The transaction involved a number of advisers. Legal counsel was provided by Brecher LLP, with Kate George, Michelle Brown, Kelly Fowler and Emma Perry acting on the deal. James Coll of Newmark UK delivered the valuation services that supported the facility's structure.
The completed commercial acquisition loan demonstrates continued lender appetite for well-located office assets where experienced sponsors can combine acquisition opportunities with longer-term asset management strategies.
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