Tuscan Capital completes £9m bridge to purchase brewery’s 130-property portfolio

The developer had agreed to buy the portfolio of 130 mixed-use commercial and residential assets in the Midlands last year.

The two sides exchanged contracts on Christmas Eve 2020, but completion stalled when the buyer’s lender pulled out. 

The developer called on Tuscan Capital in mid-February seeking a bridging facility to meet the completion deadline of 26th March.

The lender structured the deal as a single £9m loan, cross-collateralised across the 130-asset portfolio. The term was set at 12 months and the rate 0.85 per cent per month, all agreed by 24 February.

The loan was fully funded by Tuscan Capital. The borrower put some of its own unencumbered property stock against it, resulting in a loan-to-value exposure to the lender of below 60 per cent.

Tuscan Capital then selected partners to support the urgent and complex valuation and due diligence processes.

BNP Paribas Real Estate in Birmingham led the valuation, and Howard Kennedy conducted legal due diligence.

“Bringing the deal to a successful conclusion in time for our client to meet their 26 March deadline was a huge relief for everybody,” said Colin Sanders, chief executive at Tuscan Capital (pictured).

“Turning the deal around in 21 working days proved that with the right team in place and a positive, proactive mindset, the most complex transactions can be brought to a speedy resolution.

“Given the prevailing lockdown restrictions and the timeline, our choice of professional partners was critical. Richard Gill and his team at BNP Paribas Real Estate did a sterling job of valuing the portfolio inside two weeks.

“Producing the valuation report for such a large bundle of diverse property assets, and then verifying the title plans, was very impressive.

“Steve Clinning, Laura Brown, and the team at Howard Kennedy, performed outstandingly on the legal due diligence. With several all-nighters, our legals were ready for completion ahead of the borrower’s,” Sanders said.