£1.9m Mortgage For Assets Owned In Trust

Background

P10 Financial Group recently delivered a £1.9m investment facility for a long standing repeat client. There were a few reasons this particular transaction stood out. Firstly, ownership of the assets sat across multiple layers of UK trusts and the wider complex group structure.  Secondly, we were asked to structure lending across three different asset classes and two separate companies whilst still aiming to deliver competitive terms.  

The Challenge

1. Three Assets, two entities & one loan. Delivering the sharpest possible terms across three very different assets, owned within the same group but held in multiple entities.

2. Group complexity. Beneficial ownership sat across several layers of a group multiple group structures, making the true ownership picture difficult for a lender's credit team to follow at first glance.

3. Trust Ownership.  

4. No PG available. Due to the complexities of the group very limited personal guarantees were available creating further

5. Complex Assets. Given one of the assets in this structure was a trading pub, it created a further layer of complexity.

The Result

●       £1.9m of lending secured

●       Leverage – 68%

●       Pricing – Blended rate at 6.7%

●       Structure – Interest Only

●       Security – Pub, HMO & Residential Flats

Conclusion

This transaction shows that deep professional expertise is required to close transactions in this market. Having the in-house capabilities of understanding complex trust structures within large multi-entity groups allows P10 to deliver valuable solutions for our clients.