PROPERTY INVESTMENT FUNDING - CASE STUDIES

Please find below a sample of our case studies which highlight recent client work. Through our team’s expertise and access to the whole of the market, we have been able to secure favourable terms to match our clients’ specific requirements.

If you would like to learn more about how we can assist clients please get in touch.

A client approached Knox Capital Solutions with an unusual request for a significant closed ended land bridge.

The client has a loan track record in land promotion in a major UK city and had recently obtained planning on a site he had been working on for some time. He had managed to pre-sell the site subject to planning. There was a short gap in the timescales between the land being acquired and subsequently sold but the client did not want to place any further capital into this particular site. A loan of 70% LTV was required albeit the client did not want to pay excessive rates/fees for the loan.

We approached a private lender we have used in the past as the LTV was too high for any conventional Bridgers to consider. A loan was agreed on terms acceptable for the client with the lender being comfortable to use the existing valuation on the site.

Positives

Land pre-sold

Strong site location

Experienced client

Challenges

Very High LTV; 70% for land only transaction

Rates/fees in line with market and client expectations

No further capital input by the client

Non conventional lend

An offshore client approached Knox Capital Solutions to refinance a commercial asset he owned in the UK. The property is owned in an offshore vehicle. The client was looking for long term fixed rate finance to minimise the risk of interest rate rises over the period of the loan. The client sought a 10 year interest only commitment at a low all in interest rate. He was also required a very personal banking relationship.

Knox Capital Solutions approached a Private Bank that we have worked closely with on a number of occasions. Following a meeting with the client terms were issued in line with the clients expectations. A 10 year committed term loan was approved with a 10 year fixed rate and on interest only.

The loan was drawn over the summer period and a new Banking relationship formed for the client and the private bank through our introduction.

Positives

Strong Client CV

Good property long lease in place

Challenges

Offshore Client

Looking for 10 year interest only loan

10 year fixed rate requested

Personal banking relationship

A highly experienced property developer approached us to acquire a commercial property based in the Midlands within a very short period of time. Knox Capital Solutions were asked to seek a facility with a low interest to minimise their costs during a tenancy transition and also ensure that there was no exit fee and a reasonable arrangement fee.

Knox Capital Solutions undertook a full assessment, including a review of the full portfolio. We then conversed with lenders whose appetite this transaction would fall into, from both a short term and long-term perspective. The terms secured for our clients had no early repayment charges, a competitive arrangement fee and a commercial bridging interest margin below 0.75% per month.  This allowed the client to acquire the site within the given completion window and have enough time to find a new tenant for the property without any immediate pressure.

Positives:

  • Prime midlands location
  • Healthy yield available
  • Experienced client

Challenges:

  • Tenant uncertainty
  • Minimal exit penalties required
  • Vacant property

We successfully secured a mandate to refinance a multi-jurisdictional offshore UK property fund.

After a thorough research exercise a suitable funding partner was identified.

A large part of this case involved the very complicated and onerous KYC and Due Diligence requirements from the financial institution. KCS successfully project managed this lengthy on boarding process for the client.

Total Facility Size: c£6M

KCS received a request from a large nationwide accountancy firm to assist one of their clients who were looking to restructure a large multi asset portfolio into corporate ownership and move from repayment onto interest only terms.

The portfolio was split across multiple Buy-to-Let (BTL) residential properties, semi-commercial properties and in addition some high value commercial assets. The assets are all located in the North West area of the UK.

We were able to secure a flexible facility on interest only repayment terms. In addition the loan agreed was over a longer term of 10 years.

The ability to increase the debt quantum upon a lease re-gear was built into the original proposal which has subsequently been drawdown.

Facility Size: c£8m

Knox Capital Solutions assisted an offshore based High Net Worth individual with securing a £100m commercial property portfolio at the height of the Credit Crunch, securing market-leading terms as the UK banking sector recovered.

We managed the Know Your Customer (KYC) process for a complex offshore structure where individual special purpose vehicles (SPVs) were required by the client. Knox Capital Solutions sourced alternative banking partners to diversify banking lines across a number of institutions  to de-risk from a concentration level.

Knox Capital Solutions assisted an offshore based High Net Worth individual secure a £100m commercial property portfolio at the heart of the Credit Crunch, securing market-leading terms as the UK banking sector recovered.

We managed the Know Your Customer (KYC) process for a complex offshore structure where individual special purpose vehicles (SPVs) were required by the client.

Knox Capital Solutions sourced alternative banking partners to diversify banking lines across a number of institutions to de-risk from a concentration level.

An ultra-high value London residence was acquired via an offshore structure. Funding was achieved at 75% loan to value (LTV) with a highly regarded private bank with flexible terms on a pure standalone basis.

Funding secured: £10m.

An embryonic Luxembourg property fund required funding solutions for a high-performing fund investing in UK-based commercial property in the regions.

Knox Capital Solutions helped secure two banking partners to enable the fund to take full advantage of the UK property market post Credit Crunch.

The structure secured was a Luxembourg based entity managed by an Isle of Man based trust company with a complex Know Your Customer (KYC) structure.

We secured banking lines of £10m with an ongoing mandate.

Knox Capital Solutions secured banking lines for a long-standing banking client whose bankers had indicated a change of policy in respect of property funding.

We secured alternative property funding in a timely fashion on a standalone basis. Thereafter, Knox Capital Solutions secured a transfer of the whole banking relationship at improved terms and structure.

Funding secured: £5m

Knox Capital Solutions secured development funding for a partially complete speculative commercial development. The site comprised of three separate buildings.

Funding secured: £2m

Funding was secured for a large high end residential development in a major UK conurbation. Funding was agreed at a level up to 70% loan to costs. Little additional cash equity was required from the client other than the site itself.

Funding secured: £20m

Funding was secured for a new student accommodation block in a key location. The ownership structure is via an offshore fund vehicle.

Total funding secured: £5.5m

We were recently introduced to a new UK client by their solicitors who were seeking a funding package which included the acquisition of existing buildings and on-development of the site.

This was a time sensitive transaction as the existing planning permission on the site only had a couple of months left before the client would have to reapply for planning permission. Our team managed to secure funding lines for both the acquisition and also for the development finance shortly after being approached. The client completed the acquisition within their original timescale and have also commenced development work in advance of the expiry of the planning approval.

75% acquisition funding and 100% of the development funding was secured.

Total funding secured: c£3.5m split between acquisition and development finance

Having recently completed a deal with this client, we were re-engaged to arrange funding to secure the acquisition of a plot of land with full planning permission in South West London. The purpose of the plot was for the construction of a large detached residential dwelling, and so in addition we were engaged to arrange funding for the development of the building. The client was looking for 100% funding, and was able to provide additional security.

There was a short time to put arrangements in place as the client had already exchanged on the purchase, with completion due to take place within a few months.

As we had already been provided with pertinent information on the transaction at the outset, we were able to quickly identify a selection of options for the client.

After analysing the offer terms of each option, the client identified their preferred lender. We subsequently approached the lender to initiate the application process. After a couple of days the application was completed and formal approval was obtained. Following the application process, we proceeded to the valuation and legal stage which were completed swiftly within the required timescale.

GET IN TOUCH WITH OUR EXPERTS

We have a highly experienced team who have extensive backgrounds in Finance and an ethos to provide the best service for clients. We take time and care getting to know our clients and tailoring the terms available in the marketplace to ensure we secure the best terms possible.

Our team share their knowledge with each other to ensure we are all working collectively to cater for our client’s needs and keeping abreast of any market developments.