"These buildings were originally created for residential purposes and have been converted into various uses over the decades. The complexity came from four of the units being vacant, with one in a shell condition and in need of a full fit-out"
- Marc Callaghan - InterBay
InterBay has completed an £8m commercial loan secured against nine terraced buildings spanning nearly 40,000 sq ft in central London.
The properties, which feature a mix of office, retail and leisure units, were arranged across four units per building. At the time of purchase, four units were vacant, including one in shell condition requiring a full fit out.
The deal was introduced by T&T Finance on behalf of a client with extensive experience in the commercial property sector. The objective was to fund the purchase of the full portfolio. InterBay’s in-house real estate team played a central role in resolving challenges associated with the transaction, aided by the prime location and the potential for alternative uses.
“This type of case requires a combination of expertise, flexibility and a solution-based approach,” said Marc Callaghan (pictured), head of commercial lending at InterBay. “These buildings were originally created for residential purposes and have been converted into various uses over the decades. The complexity came from four of the units being vacant, with one in a shell condition and in need of a full fit-out.
“However, with our specialist knowledge, we were able to use the investment value, which was backed by our internal Transaction Credit Committee, and a number of in-house specialists helped navigate the complex credit situation. It really was a great effort by all involved and a great end result.”
To expedite the process, InterBay worked from the investment value rather than the vacant possession value. Early legal instruction was also secured through Walker Morris, allowing the loan to complete within just six days of offer. The facility was arranged at 65% loan-to-value (LTV).
“This was a high-value, complex deal, and the team at InterBay really pulled this deal out of the bag to complete in only six days,” said Samuel Tesler, director and co-founder of T&T Finance. “Mo and the rest of the team kept us informed at all times and their expertise really supported T&T Finance in getting the client the funding they needed to secure their portfolio.”
