Shawbrook, Paragon and MFS complete commercial and development deals worth £13m

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  • 16/03/2021
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Shawbrook, Paragon and MFS complete commercial and development deals worth £13m
Shawbrook Bank has completed a £7m refinance and capital raise within two working days of issuing the offer. 

 

The lender delivered the commercial investment facility working together with adviser Pure Funding Solutions.

The deal comprised £5m refinance and £2m new capital to support an existing customer’s next commercial property investment.

The loan was over 10 years at 75 per cent loan to value (LTV). It was offered on a Friday and completed on the Monday.

The customer approached Pure Funding Solutions seeking to refinance its large commercial property of 83 self-contained units all let on short-term leases. And it wanted to finance another large commercial multi-let project, repeating its proven operating model.

“Working seamlessly with our strategic partner, we gained a deep understanding of the client’s needs and end-goals, which was crucial to the success of the case,” said Gavin Seaholme, head of sales at Shawbrook Property Finance. 

“This existing Shawbrook customer’s proven operating model has been successful throughout the pandemic and we are happy to support their continued investment journey,” he added.

Danny Churchill, owner of Pure Funding Solutions, said: “This is an outstanding effort by all involved — from initial discussion to presenting to the complex deal forum through to credit sign off.”

 

MFS backs Surrey office development

Market Financial Solutions (MFS) has delivered a £2.9m loan on an office building in Surrey. 

The rate was 0.95 per cent and the LTV 70 per cent, which the lender noted was among the highest LTVs currently available for commercial bridging.

The broker required a fast turnaround for their client who risked missing a pre-arranged deadline and losing their deposit on a deal because the existing lender was delaying. 

MFS arranged a valuation within 48 hours of receiving the case and the bridging loan was deployed three days later.

“We successfully secured two funding lines totalling £350m at the beginning of the year. Since then, we have been inundated with enquiries from residential and commercial clients in need of fast, tailored bridging loans,” said Paresh Raja, chief executive at MFS.

The lender relocated to a new office in Mayfair, London, in March, as part of its plan for growth in 2021. 

“I expect similar cases in the coming weeks. The property market is alive with activity, however many lenders are not in a position to address complex cases with pressing deadlines. I anticipate demand for bridging loans to rise,” Raja said.

 

Paragon Bank provides £3.2m

Paragon Bank has provided at £3.2m funding facility to Brookland Group to support development of 13 homes in Derbyshire (pictured).

The funding will be used in multiple phases of the Woodfield Road development in Hartshorne, which comprises two, three, four and five-bed houses for first-time buyers and families. The developer expects to break ground in April and complete the project next spring.

“This is our second development with Paragon Bank and we have always been impressed with how efficient and straightforward the bank is to deal with. They always deliver on their commitments,” said Simon Dawson, director at Brookland Group.

Oli Thompson, relationship director at Paragon Bank said: “We see this development having wide appeal because of the quality of homes and attractiveness of location.

“Small and medium size developers such as Brookland are vital to supplying housing and we are committed to working with them to provide finance for these developments.”

 

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