MFS completes large bridging loan for complex shopping centre deal

Market Financial Solutions (MFS) has completed a large bridging loan which enabled a client to complete a complex shopping centre purchase.

The lender issued a £1,755,000 loan at an LTV of 65% and with a 12-month term. The loan was arranged within just 10 days to meet the auction deadline.

MFS had originally provided a £3.8m loan to the client to purchase a different shopping centre in March. At the time, several other lenders had rejected the commercial asset due to its empty units caused by businesses exiting leases early due to the pandemic. However, based on the client’s assets, as well as their commercial background and business experience, MFS agreed to provide the loan.
 
In June, this client returned to MFS requiring finance to purchase a second shopping centre in the South of England. They were to sell the original commercial asset, which had increased in value since the purchase, but were waiting for the deal to be completed. The second shopping centre had been bought at a commercial property auction, with the auction house having issued a 10-day notice to complete. The asset again had several units that were empty, but MFS was still able to provide finance within the timeframe.

“Large commercial units like shopping centres will often present unique challenges for lenders, but we were delighted to be able to assist our returning client by delivering a large loan in a matter of days,” MFS CEO, Paresh Raja, commented. “It is a great example of MFS’ speed and flexibility in handling all manner of enquiries.

“In this case, the fact the asset was being purchased at auction and a tight deadline was imposed, coupled with the issues flagged by the valuer, made matters particularly complex. We applied our experience and expertise to quickly overcome the challenges though.

“Moreover, as with the original loan we provided to the client, we were also able to see the bigger picture – knowing their business nous and the other assets they held, we knew we could proceed with confidence.”

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