LHV Bank Supports £7 Million Commercial Loan for Manchester City Centre Investment

20 January 2025

LHV Bank has successfully completed a £7 million commercial investment loan for a private Manchester-based family office, renowned for managing property assets across the North West.

The loan facility was arranged to refinance existing debt secured against a prime multi-let office building located in Manchester City Centre, while providing the necessary stability for ongoing asset management.

The borrower, a family office with a long-standing reputation as a skilled property asset manager, operates as part of a syndicate of experienced investors. The property, a Grade A freehold period building, benefits from its central location, close to key amenities and transport links, and features a diverse tenant mix across office and retail spaces.

The transaction was introduced by Paul Wilcox of GDP Funding, a central Manchester-based brokerage, and involved a tailored funding solution including a 68% LTV interest-only loan facility over a five-year term.

The multi-let building represents an attractive, income-producing asset in a high-demand location. With its fully let status, strong cash flow, and Grade B EPC rating, the building offers significant opportunities for rental growth through lease re-gears and upcoming relettings. The property’s unit sizes, under 5,000 sq ft, also cater to Manchester’s robust office demand.

Key challenges, including an imminent loan expiry and wider economic uncertainties in the UK office market, were overcome through LHV Bank’s efficient and straightforward lending process.

Michael Thompson, Lending Director at LHV Bank, commented:

“We are proud to have partnered with GDP Funding to support this refinancing for a highly regarded family office. The property’s excellent location and the borrower’s proven asset management expertise made this a strong proposal. This loan reflects LHV Bank’s ethos to provide bespoke solutions that deliver the best outcome for the customer. We’re excited to see this property continue to deliver strong returns under experienced management.”

Paul Wilcox, Director at GDP Funding, added:

“This was a vital refinancing for our client, and it has been an absolute pleasure working alongside LHV Bank to deliver such a well-tailored funding solution. Their collaborative approach, combined with a deep understanding of the commercial property market, made the entire process seamless. Together, we’ve enabled our client to focus on unlocking the property’s full potential.”