Case Study: Shawbrook Commercial completes large STL in London

11 July 2016

Just six working days between receiving the valuation report and completion…

Shawbrook Bank’s Commercial division is pleased to announce the rapid completion of a short term loan in excess of £7.5m at 68% LTV, via their Strategic Broker Partner Buchler Barnett Spencer.

Buchler Barnett Spencer is a structured finance advisory business based in Mayfair, London. The core of their business is arranging and structuring senior debt finance for property investment and development projects. Whether financing new acquisitions or refinancing existing projects, they are active across all sectors of the property market and have completed transactions as small as £1 million and as large as £250 million. Their team has almost 90 years of combined property experience and has collectively financed over £7 billion worth of transactions.

The securities on the loan were seven residential units within an office conversion in Old Street, Central London with the client looking to refinance away from their existing development lender.

Despite not receiving the full valuation report until after the unexpected result of the EU Referendum, the Shawbrook Lending Manager did not allow this to prevent the case from progressing. Taking a measured, proactive approach, Shawbrook lending teams consulted the valuer for additional commentary with regard to how the “Leave” vote may impact their initial report.

Satisfied by the valuer’s response and with rental demand strong, the case was presented to Shawbrook’s weekly Group Credit Committee before formal offer was issued on the same day (30th June). Legal conditions were generally straightforward and satisfied without delay. The one condition that could have been more problematic was around the planning of the previous development loan secured via another lender.

However, as Buchler Barnett Spencer’s client was an existing customer of Shawbrook with a strong track record, the lending teams felt comfortable in proceeding to completion. This sort of pragmatism and initiative was essential to completing the loan on 4th July, a mere six days after receiving the initial valuation report. As an existing customer of the Bank, the broker’s client also benefited from a discount of 0.25% to the margin rate, a significant positive which sees Shawbrook maintain many long term relationships with its customers.

Emma Cox, Sales Director for Shawbrook Commercial commented:

“Considering the size of the loan and speed with which it completed, we are pleased with this reflection of our lending appetite post EU referendum”

“Whatever the future challenges, we remain committed to the professional investor and landlord via our dedicated network of Broker Partners, and we are confident in this market’s ability to continue to grow.”

Broker, Westley Richards from Buchler Barnett Spencer added:

“My clients are experienced property investors who hold a longstanding relationship with Shawbrook, enabling the completion of this loan within such an impressive timescale.

“As I have come to expect, the Bank’s underwriters played a vital role in the successful outcome of this case. The communication I received from them as well as the Group Credit Committee was clear, honest and always designed with my clients’ requirements in mind.”