LHV Bank delivers £10.92m facility to fund prime office asset acquisition

23 April 2025

LHV Bank has completed a £10.92 million loan to an SPV owned by a long-established family property investment company. The facility has retrospectively funded the acquisition of a prime office building near Birmingham, secured at a significant discount to market value through a fast-tracked completion.

The borrower identified an opportunity to acquire the asset off-market at a price below valuation, with the vendor favouring speed and certainty. LHV Bank was able to fund 82% of the purchase price, equivalent to 70% of the independent market value, reflecting the lender’s flexible approach to underwriting and appetite for experienced borrowers with a clear rationale.

The transaction was approved and drawdown was completed quickly to allow the borrower to exit an expensive bridging facility. Legal and valuation workstreams were progressed in parallel, helping the client meet key timelines and secure a strong yield on the investment from day one.

The five-year commercial investment loan was agreed on a 20-year amortisation profile.

LHV Bank, a fully licensed UK bank, provides banking services for fintechs, SME lending solutions for UK businesses, and personal savings through deposit partnerships. The SME Lending division focuses on loans from £0.5 million for commercial investment and trading businesses across the UK.

Conor McDermott, Director of SME Lending at LHV Bank, commented:

“This case was an excellent example of us taking a practical view rather than just focusing on headline figures. The client secured the asset below market value and needed a lender who could see the bigger picture. The deal team, led by Darren Switzer, were able to put together a deal that reflected the true value of the property and move quickly to help reduce their costs. It’s the kind of deal that suits us – experienced investors, a strong asset, and a straightforward, solutions-led approach.”