Case snapshot
- Facility
- Refinance with equity raise
- Loan amount
- £4,000,000
- Loan-to-value
- 60%
- Rate
- 6.29% fixed for 5 years
- Repayment
- Interest only
- Asset
- 22,216 sq ft office, Surrey
Refinancing Commercial Property on Rising Value
For commercial property owners, a refinance is rarely just about replacing one loan with another. Where an asset has increased in value since acquisition, a well-structured refinance can do two jobs at once - releasing equity for reinvestment and securing meaningfully better terms than the original facility. Getting the timing and structure right is what turns a routine refinance into a genuinely commercial outcome.
Structured Debt Advice for Commercial Property Owners
The P10 Capital team works with clients across the full lifecycle of a commercial asset - from acquisition through to refinance, equity release and beyond - structuring debt that reflects how the asset, and the client's objectives, have evolved.
In this case, we were instructed by a client we had originally supported two years earlier on the purchase of a 22,216 sq ft office asset in Surrey. With the asset's value having increased since acquisition, the client returned to P10 to refinance the property, with two clear objectives: release equity from the uplifted value, and move onto more cost-effective funding.
We structured a refinance with equity raise, securing £4,000,000 of borrowing at 60% leverage against the current value of the asset - implying a value of approximately £6.67m. The facility was arranged on an interest-only basis, fixed for five years at 6.29%, giving the client certainty over financing costs for the medium term while releasing additional funds against the asset's uplifted value.
Delivery For Our Clients
The solution we delivered was as follows.
Asset class - Office
Location - Surrey
Size - 22,216 sq ft
Transaction type - Refinance with equity raise
Borrowing - £4,000,000
Leverage - 60%
Interest rate - 6.29% (fixed)
Term - 5 years, interest only
This solution delivered on all objectives for our client:
✔ Released additional funds against the uplifted value of the asset, freeing up capital for the client to deploy elsewhere
✔ Secured a 5-year fixed rate, giving the client certainty over financing costs for the medium term
✔ Moved the client onto materially cheaper funding than the original facility, improving the overall cost of debt on the asset
