TAB has announced that it has provided two linked bridging facilities totalling £4.5 million to refinance existing debt secured against commercial properties in Poole and Bournemouth.
Both loans completed within seven days of the initial enquiry, despite a complex legal and beneficial ownership structure.
The first facility provides £3,477,000 against a commercial property in Poole, which has a valuation of £5,225,000 and an initial loan-to-value (LTV) ratio of 66.5%. The second provides £975,000 against a commercial property in Bournemouth, valued at £1.5m, giving an initial LTV of 65%.
Together, the facilities have an initial LTV of 66.2% against a combined property valuation of £6.725m. Both loans run for 24 months, with interest retained for the first month and serviced thereafter.
The properties have different asset management requirements. The Poole property is a substantial office building with three vacant upper floors. A large tenant has also recently exercised a break clause. The valuer identified significant potential to improve the asset and considered it could be sold within approximately six to nine months.
The Bournemouth property combines commercial and residential accommodation. Its ground floor extends to more than 17,000 sq ft but has remained vacant since 2023. The valuation assumes the space will be subdivided into four units, requiring capital expenditure and an extended letting period.
The transaction also involved a complex legal and beneficial ownership structure. TAB incorporated this into the borrowing and security arrangements to ensure its position covered the relevant interests in both properties.
The primary exit strategy is to sell the properties after reletting. Alternatively, the borrower could seek approval for residential conversion under permitted development rights.
OPES Financial Partners, a whole-of-market mortgage broker, introduced the loan.
"These two properties presented very different challenges – this was not a straightforward refinance," commented Matthew Davies, co-founder of OPES Financial Partners.
"The Poole property has significant vacant space and needs active asset management. The Bournemouth property has a large vacant commercial element and a more involved letting strategy.
He added, "We needed a lender that could look at both properties and the wider exit, rather than assess the refinance purely against today’s income – someone who could bring momentum to the lending. TAB understood the underlying value and gave us the structure needed to refinance the existing debt while allowing time to execute the asset-management strategy. And they moved fast: seven days from enquiry to completion is exceptional given this deal’s complexity.”
The facilities include mandatory quarterly capital repayments to reduce the outstanding debt during the loan term. The borrower will repay £120,000 each quarter against the Poole facility and £30,000 against the Bournemouth facility, reducing the combined borrowing by £150,000 every three months.
The loans are fully cross-collateralised and cross-charged, giving TAB security across both properties.
"Two properties. Two different challenges. One clear lending structure. We looked at the properties, the existing debt and the exit. That gave us the confidence to move quickly," explained Michael Grant, head of sales at TAB (pictured).
“The quarterly capital repayments reduce the debt throughout the term. The cross-collateralised structure also gives us additional security across the assets.
Grant added, “The properties need active management to deliver the exit. That was not a problem – we are comfortable with complexity when the value is there and the exit stacks up.”
If you’re exploring bridging or development finance, get in touch and we can connect you with the right lender.
