Octane Capital funds mixed-use ownership transfer; Castle Trust Bank delivers hybrid loan

Octane Capital funds mixed-use ownership transfer; Castle Trust Bank delivers hybrid loan

 

Shares in the site were transferred to two limited companies comprising of 60 tenancies and 40 titles that had been held by the same managers for 25 years 

Nick Harrison, founder of commercial broker Bespoke Business Finance, said: “This ended up far more complicated than originally anticipated with a share purchase agreement involving numerous shareholders, a highly complex security structure and three sets of lawyers.  

In my eyes, the transaction would never have got over the line without Octane’s expertise.

Alex Tyrwhitt (pictured), head of structured finance, Octane Capital, added: “Nick Harrison and Martin Lee of Bespoke showed their quality and experience as ever by working day and night to ensure all parties and professionals were on track, informed and motivated to see the deal through to a successful completion. 

“In addition, Simon Noonoo and the rest of the team at Seddons were absolutely crucial in getting this labyrinthine deal over the line.” 

 

Castle Trust Bank completes £9.6m hybrid loan 

Castle Trust Bank has completed a £9.6m development exit loan with a combined serviced loan and bridge. 

The lender worked with brokerage Sirius Property Finance to enable the client to secure the loan on a block of 69 one and two-bedroom apartments in a five-storey commercial to residential conversion. 

The project was constructed under permitted development and the owner plans to sell some of the residences and let the remainder. 

The loan has been split between a bridging loan on the properties which will be sold alongside a five-year fixed rate loan with serviced interest on the properties which will be let.  

The bridge will convert to a serviced loan after nine months to allow the client to de-leverage the loan or service the debt.  

The development has been valued at £13.2m and the loan to value (LTV) was 73 per cent. 

Rob Oliver, sales director at Castle Trust Bank, said: “This case is an excellent example of the type of bespoke deal we are able to structure at Castle Trust Bank.  

The client wanted the flexibility to sell some of the units but also a sustainable solution that would allow them to retain the majority of the units for ongoing income. 

Nicholas Christofimanaging director at Sirius Property Finance, said: “It’s always a pleasure to work together with a lender on a deal like this, which is structured to give a client exactly what they need.”