Case snapshot
- Property value
- £6,100,000
- Loan-to-value
- 60%
- Rate
- 6.90% fixed for 5 years
- Repayment
- Interest only
- Asset
- 32,000 sq ft office, Surrey
- Purchase
- About 55% of its last traded price
£6.1m Surrey Office Purchase
At P10 Financial Group our specialists are experienced at finding the right commercial lending solutions, even in some of the most complex of cases. The commercial real estate market has taken a huge hit in 2023, although this has posed huge opportunities for well capitalised buyers.
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P10 Financial Ltd is authorised and regulated by the Financial Conduct Authority (FRN 832186).
Market Turmoil
All three mainstream sectors of the commercial property market suffered steep declines in buyer activity compared to 2022. Retail volumes were down by around 30%, while office and industrial investment both slumped by around 50%.
Acquiring Assets in A Depressed Market
Although interest rates have risen in the commercial market, this has created huge amounts of opportunity for the savvy investors. We were retained on this transaction to deliver the debt advisory. Our client was able to secure this asset at around 55% of the price that it last traded for. This sort of value will be hard to find for a very long time. This particular transaction was purchased at less than £200 per sq ft which is extremely attractive for an asset based in Surrey.
The result for the client
· Value of Asset - £6,100,000
· Interest rate – 5 year fixed rate at 6.90%
· Total LTV – 60%
· Debt Structure - Interest Only
· Size – 32,000 Sq Ft
The P10 Financial Group Service
If you are looking to acquire commercial property and want to make sure you are receiving the best structured terms available then it is worth contacting the team to see how we can help you. We always aim to add value to our clients by finding a deal, often bespoke, with carefully negotiated terms to suit our client’s interests.
All of this with the friendly and professional service that we have become renowned for. We look forward to working with you.
