Commercial mortgage lender TAB has provided two connected bridging finance facilities totalling £7m to the same borrower, funding the purchase of two freehold commercial units on Portobello Road and the removal of two further properties on the street from a SIPP structure.
The deal also reorganised the ownership structure of the borrower's existing portfolio and included the acquisition of more commercial property in Notting Hill through a share purchase agreement. TAB supported the borrower across the connected transactions, including the movement of funds through SIPP and pension structures.
The wider transaction covered an additional interest in one Portobello Road property for £1.5m and the purchase of two parts of another commercial property for £1.4m. The two further properties on the street are freehold retail units with an open market value of £6m. Established businesses occupy the units and operate them as concessions, which adds an income-producing element to the portfolio.
Structuring the bridging finance
TAB provided two 12-month first-charge facilities, supported by a personal guarantee from the borrower. The funding allowed the borrower to complete the acquisitions, restructure the existing portfolio and progress the SIPP and pension movements to a tight timetable. The borrower plans to refinance onto longer-term commercial mortgages with a high street lender once the deals complete and the relevant licences are renewed.
The lender assessed the properties, the different ownership structures, the SIPP and pension arrangements, existing and prospective income and the borrower's exit strategy, while coordinating the funding for the same customer across each deal.
Portobello Road is one of London's best-known streets, running through the heart of Notting Hill. Its market, independent retailers, restaurants and established residential market attract residents, businesses and visitors throughout the year.
"This was a complicated set of transactions," said Duncan Kreeger, founder and CEO of TAB (pictured). "We had multiple properties, a complex ownership structure and several interconnected acquisitions to complete, all within a tight timetable.
"We had to understand the whole picture, including the existing portfolio, the new acquisitions, the income, the associated SIPP and pension arrangements.
"The important thing was being able to support the same customer across multiple deals and keep everything moving at the same time.
"Yohann fielded the enquiry and issued terms with a lightning-fast turnaround. Justice handled the underwriting process with real finesse, enabling a quick and smooth completion. Think TAB, think responsiveness! We gave the borrower certainty around the funding and the ability to complete the wider transaction quickly. This is a perfect example of how TAB brings momentum to lending. Think TAB, think specialist lending."
Yohann Ifrah, manager of TAB's business development executive team, dealt with the enquiry, while senior underwriter Justice Marima handled the underwriting.
Legal advice came from Teacher Stern LLP. "This was a transaction with several moving parts," said Nick Davies, legal director for real estate at the firm. "It involved an existing portfolio, a change in ownership structure, further acquisitions and SIPP and pension arrangements – all of which had to be dealt with as part of the wider transaction.
"TAB took the time to understand the structure and the requirements of the transaction and was able to provide the funding needed to keep the different elements moving towards completion. Justice and the TAB team were responsive throughout the process, which helped us complete the transaction within the required timeframe."
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