£4m Refinance Unlocks Equity and Cheaper Debt on 22,216 sq ft Surrey Office

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.