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Case Study

Refinance of pan-island Commercial Portfolio



Owners of a pan-island commercial real estate portfolio sought long-term lending against multiple mixed use assets, including medical and healthcare.
  • Total Portfolio Value £15m
  • Medical Centre Asset £11m
  • Medical Tenants 20

Deal Outline

Assets

  • Multiple commercial assets totalling £15m in value
  • Split across the islands of Jersey and Guernsey
  • £11m medical use, £4m mixed use

Security

  • First charge over portfolio
  • 20 tenants in the medical building alone

Income

  • From rental of all properties
  • Portfolio WAULT circa 5 years

Requirements

  • £9 million refinance
  • 60-65% LTV sought
  • Long term

Challenges

  • Lender understanding of Channel Islands
  • Mixed use assets, split location
  • Multi-tenant medical centre (versus single tenant i.e NHS)

Facility Secured

  • 10 year term at 2.58% over LIBOR
  • 61% secured - £9.1m
  • Low amortisation secured

Summary


Our client sought a sophisticated refinance, to consolidate debt across their £15m real estate holdings. Based in the Channel Islands, the portfolio comprised of mixed use assets but over 70% of these by value were medical use. The client was hoping for 60-65% LTV, despite the concentration of the portfolio towards this lead asset.

The large medical centre made up the bulk of the portfolio value and received healthy income from 20 tenants. Leases varied from one to 22 years and the WAULT across the portfolio was only around 5 years. Given the client required a long term lending solution, we were delighted that our modelling secured a ten year term at 2.85% over 3 month LIBOR. Not only could the viability of the lend be demonstrated, but the high quality of the tenants and demand for professional medical services within the local market.

Aside from the margin, a low amortisation profile was agreed and the debt was secured for pan island use.


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