United Trust Bank Structured Property Finance provides 100% funding for the acquisition of commercial premises

06 March 2023

United Trust Bank (UTB) Structured Property Finance has provided a £1.06m loan to enable an experienced property investment company to complete the purchase of a 5000 sq ft commercial space on the ground floor of a new mixed-use development in Nine Elms.

Adrian Carey of PIA Financial Group approached UTB on behalf of Brixton Developments Limited which was seeking funds to complete the purchase, having exchanged contracts off-plan in 2019.

Having secured the purchase with a 5% deposit, the client spent the next 18 months researching, identifying and ultimately securing a ‘blue-chip’ tenant willing to commit to a 10-year occupational lease of the commercial space. By securing the tenant, the client increased the market value of the unit to £3m and it was this value, rather than the purchase price, on which UTB agreed to base their offer.

Adrian Carey negotiated a suitable facility with UTB, securing 100% of the funds required by the client to complete the purchase, pay the SDLT and cover fees and interest rolled up over the three year term, which accounted for a period of rent incentives for the new tenant.

Brixton Developments Limited commented: “Adrian Carey at PIA Financial Group introduced us to United Trust Bank as we were struggling to source funding on a loan to value basis. It was clear from the start that UTB were an outward facing, entrepreneurial funder, whose approach is on a deal by deal basis, rather than one size fits all. They made the process very easy and more importantly, reacted quickly when any issues arose. We are delighted with the outcome of this project and look forward to working with UTB and PIA on future opportunities.”

Adrian Carey, Associate Director at PIA Financial Group, commented: “This was a very interesting proposition and It took a lender with the ability to take a commercial view to make it work. Brixton Developments, used their knowledge and vision to exchange contracts on the site, off plan in 2019. They then had the skill and determination to source and secure an excellent tenant for the property on a 10 year lease. The team at UTB, including Gerard, Martin and James, who were excellent throughout ,were able to use the uplift in value that the lease created to structure a deal that worked perfectly for my client.”

Gerard Morgan Jackson, Head of Structured Property Finance – United Trust Bank, commented: “This was an unusual case but we enjoy working with and supporting experienced investors like Brixton Developments, who have an eye for spotting commercial and residential opportunities and the skills to add significant value to buildings and land.

“Our relationship with Adrian at PIA and our willingness to take a pragmatic and commercial view of the enhanced value of the property, enabled us to provide a competitive solution which met all of his requirements. I look forward to working with Brixton Developments and Adrian again on future projects.”