Pivot completes £840k bridge enabling office to resi conversion
Pivot has completed an £840,000 first charge loan, enabling clients to acquire a four-storey office building in West Bromwich, and to meet a tight completion deadline with the use of a newly formed special purpose vehicle (SPV).
With prior approval for change of use to residential already achieved, the borrowers had less than three weeks to secure the funding they needed to acquire the office building.
An early meeting with both the intermediary and the clients enabled Pivot to gain an understanding of the borrower’s plans, their complex capital structure, and the importance of the loan in both securing the property and enabling the clients to apply for enhanced planning.
A first charge loan was secured against the office block at 60% loan-to-value (LTV) on a rate of 0.89% per month over a term of 12 months.
A full valuation was obtained within eight days of the original approach, and Pivot was able to complete the loan in just over two weeks, ensuring funds were in place in advance of the scheduled completion.
Exit will take the form of development finance.
Vishal Dixit (pictured), head of business development at Pivot, said: “The case certainly had its complexities – quirky asset, planning play, complex borrowing structure and a quick turnaround was needed.
“Effective communication from the outset was key to getting this completion across the line in a timely and efficient manner.”
Alex Kyriacou, managing director at Funding Advisory Limited, said: “There are very few lenders that understand brokers and the often-complex needs of their clients quite like Pivot.
“This was a case that had its quirks, but the team made sure they understood these early on enabling a smooth and fast completion.”