The Background
Our client, an experienced commercial property investor with over two decades of activity in South London, approached us with a new acquisition opportunity. With a track record of identifying value in vacant assets and executing swift turnaround sales, his strategy relies on timing, pricing, and efficient access to capital.
On this occasion, he was purchasing four adjoining ground floor and mezzanine units totalling approximately 9,500 sq ft. The business plan was simple: buy, repackage, and sell. The target resale price of £250 per sq ft meant that just a partial sale, around a quarter of the space, would clear the debt.
But executing a clear-cut strategy still requires smart finance. That’s where we came in.
The Challenge
The acquisition was straightforward on paper, but a few factors added complexity from a lending perspective:
The units were vacant, with no immediate income
The client needed leverage of around 70% on the purchase price
The timeline to complete was tight, with the seller looking for a clean and committed buyer
Given the client’s strategy was based on resale rather than income or refurbishment, some lenders struggled to fit the deal into their usual underwriting approach
There was also a clear need to avoid expensive short-term finance that would erode the margins of the exit.
The Approach
We worked closely with the client to ensure the funding case was positioned around what mattered most: asset value, exit logic, and track record.
This meant:
Packaging the deal based on recent sales evidence to support the £250/sq ft resale target
Highlighting the strength of the location and its liquidity for smaller owner-occupier or investor buyers
Emphasising the simplicity of the business plan, this was a clean flip with no planning, refurbishment or letting risk
Drawing on the client’s past deals to build lender confidence in delivery
We adjusted the purchase and loan figures slightly to maintain anonymity but preserved the core leverage at around 70%.
The Outcome
Loan of £715,000 arranged against a purchase of £1,040,000
Competitive short-term facility secured with flexible exit terms
Pricing significantly below market bridging rates, no monthly drain on margins
Facility structured with the exit strategy in mind: the client only needs to sell around 25% of the floor area to fully repay the debt
The Takeaway
This was a classic case of matching deal structure to the strategy, not forcing a square peg into a round hole.
Vacant space doesn’t mean risk if the exit is clear, and vacant assets with strong resale liquidity can be ideal candidates for well-structured bridging finance.
By understanding the real drivers of the deal, and building a lender case around those, P10 delivered funding that worked for the client, not against them.
If you're acquiring, repositioning or trading commercial assets, speak to P10. We'll help you structure finance that aligns with the way you do business.
