Tuesday’s Top Transactions – Episode 38

Four lenders. Four transactions. Almost £15.87 million in completed specialist property finance.

This week's transactions highlight the importance of understanding the full picture behind a lending opportunity, whether that involves refinancing a complex property portfolio, assessing income-producing commercial assets or recognising the underlying value of a discounted acquisition.

From MS Lending Group completing a six-property portfolio refinance in just 16 working days, to Hilco Real Estate Finance supporting the disposal of commercial assets in Jersey, District & County Investments funding a below-market-value acquisition in Luton, and Ortus Secured Finance structuring funding around two London pubs, each transaction demonstrates a different aspect of specialist underwriting.

The common thread is a willingness to understand the security, the borrower's business plan and the proposed exit rather than relying solely on conventional lending criteria.

 

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MS Lending Group

• Mixed-Use Portfolio Refinance, Multiple UK Locations

• Gross Loan Size: £6,900,000

Summary of the Case

MS Lending Group completed a gross bridging facility of just under £6.9m to refinance a mixed-use investment portfolio comprising six properties across England, delivering funding within 16 working days of solicitor instruction.

The borrower approached the lender in early October with an urgent requirement to restructure existing borrowing, with a fixed repayment deadline approaching in the middle of the month.

The portfolio had a combined valuation of £9.67m and comprised a country estate with approximately 66 acres of land in Warwickshire, a six-bedroom HMO in Fulham, two semi-commercial buildings in Walsall and Leicester city centres, and two substantial detached houses in Northamptonshire.

MS Lending Group took a first legal charge across all six properties, structuring the facility at 71% LTV over 12 months.

A further consideration was the ongoing conversion of the Walsall and Leicester properties into 20 residential flats above ground-floor retail accommodation.

With those works expected to complete during the loan term, the portfolio's anticipated gross development value increases to £10.48m.

To accelerate the transaction, MS Lending Group arranged for existing full valuations to be readdressed to the lender, removing the need to commission entirely new reports and reducing both time and cost for the borrower.

The transaction involved multiple legal representatives and third parties, requiring close coordination and an adaptable approach to progressing the refinance.

Introduced by Will Fox of UKMC, the completion represents the 30th transaction funded between UKMC and Tom Herbert, Relationship Manager of the North at MS Lending Group, since Tom joined the business.

The case highlights MS Lending Group's ability to structure larger, multi-asset facilities alongside its more familiar short-term property transactions, while navigating complex security arrangements and challenging completion timescales.

Comments

Will Fox of UKMC praised Tom Herbert, Mike Watson, Aimee Everton and the wider MS Lending Group team for their approach throughout the transaction.

He described it as the most complex case of his career, highlighting the involvement of six sets of solicitors and multiple other parties.

Will particularly credited the team's commercial mindset, ability to respond to changing circumstances and willingness to see the transaction through to completion.

Michael Stratton, CEO and Founder of MS Lending Group, highlighted the significance of the transaction in demonstrating the lender's capability to deliver larger, more complex facilities alongside its established smaller transactions.

Who Was Involved

• Tom Herbert – Relationship Manager of the North, MS Lending Group

• Mike Watson – MS Lending Group

• Aimee Everton – MS Lending Group

• Michael Stratton – CEO & Founder, MS Lending Group

• Will Fox – UKMC

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Hilco Real Estate Finance (HREF)

• Commercial Bridging Facility, St Helier, Jersey

• Loan Size: £7,500,000

Summary of the Case

Hilco Real Estate Finance completed a £7.5m bridging facility secured against two neighbouring office buildings in St Helier, Jersey.

The 24-month facility provides funding against two fully let, five-storey commercial buildings with a combined floor area of 35,722 sq ft.

The finance has been structured to support the sale of the assets, allowing the borrower time to execute the disposal strategy.

An important consideration was the quality of the underlying security, with both properties benefiting from established occupancy and a central location in Jersey's capital.

The lender's assessment considered the commercial nature of the assets, their existing tenancy arrangements and the anticipated demand during the proposed sales process.

HREF's established experience of lending in Jersey also supported its understanding of the local property market and the requirements of the transaction.

The facility demonstrates how bridging finance can provide experienced commercial property borrowers with time to implement a disposal strategy rather than requiring an immediate sale.

It also reflects HREF's appetite for commercial real estate opportunities beyond mainland UK markets, with the lender identifying the Channel Islands as an area for further business.

Comments

Sean Adams, Managing Director at HREF, highlighted the importance of understanding the borrower's requirements and providing an appropriate capital solution.

He also expressed confidence in buyer demand for the well-located, fully let office buildings.

Alexey Shokhin, Origination Director at HREF, emphasised the lender's existing experience in Jersey and its ability to underwrite different real estate asset classes.

He also indicated that HREF anticipates further lending opportunities across the Channel Islands.

Who Was Involved

• Sean Adams – Managing Director, HREF

• Alexey Shokhin – Origination Director, HREF

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District & County Investments (DCI)

• Below-Market-Value Residential Acquisition, Luton

• Loan Size: £370,000

Summary of the Case

District & County Investments completed a £370,000 bridging facility to support an experienced repeat borrower purchasing a four-bedroom detached property in Luton at below market value.

The borrower had agreed to acquire the property for £370,000 ahead of auction, with the transaction introduced by Tushar Gadikar, a broker who had previously worked with DCI.

The lender had also supported the borrower on an earlier property acquisition, providing an established relationship between all parties.

The transaction was structured using DCI's below-market-value (BMV) bridging product, which allows qualifying acquisitions to be assessed against the underlying market value of the security rather than solely the agreed purchase price.

Where a sufficient discount exists, this approach can allow DCI to consider funding up to 100% of the acquisition price.

In this case, the £370,000 facility matched the agreed purchase price, demonstrating how the product can help borrowers acquire discounted assets without needing to contribute the same level of purchase equity ordinarily required under a standard acquisition facility.

A central consideration was establishing the property's underlying market value and understanding how the agreed discounted price had been reached.

Rather than treating the purchase price as the sole measure of value, DCI assessed the individual transaction and the security supporting the loan.

The completion highlights the importance of specialist underwriting when borrowers identify investment opportunities significantly below market value.

It also demonstrates the value of established broker and borrower relationships, particularly where a lender is familiar with the parties involved and understands the type of transactions they are looking to complete.

Comments

Michael Clifford, Commercial Director at DCI, explained that BMV lending requires an understanding of the agreed purchase price and sufficient confidence in the property's underlying market value.

He emphasised the importance of assessing the individual circumstances rather than applying a standard approach based exclusively on the price being paid.

Michael also highlighted the significance of the borrower and broker returning to DCI, with existing relationships helping both sides understand the expectations and requirements involved.

Tushar Gadikar similarly praised DCI's understanding of discounted property acquisitions and its willingness to assess the underlying value rather than relying solely on the transaction price.

Who Was Involved

• Michael Clifford – Commercial Director, District & County Investments

• Tushar Gadikar – Introducing Broker

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Ortus Secured Finance

• Commercial Acquisition & Refinancing, Peckham and Wandsworth

• Net Facility: £1,100,000

Summary of the Case

Ortus Secured Finance completed a £1.1m net facility to support the acquisition of a tenanted public house in Peckham, London, using equity in the borrower's existing Wandsworth pub as additional security.

The borrower required funding to complete the acquisition while retaining sufficient time to refurbish the Wandsworth property and establish stronger trading performance ahead of securing longer-term finance.

Ortus structured the facility against both properties, enabling the lender to assess their combined security position and the borrower's wider business plan.

A particularly important aspect was the lender's willingness to consider projected trading performance as part of the underwriting process, recognising the anticipated improvements to the existing business.

The 36-month facility included six months of retained interest, reducing the borrower's immediate interest-servicing requirements while refurbishment works progressed and trading performance developed.

The proposed exit is through a longer-term refinance once the business has established more stable trading figures.

The transaction demonstrates how specialist commercial finance can support property acquisitions alongside operational improvements, particularly where borrowers require funding structures that accommodate both existing asset equity and projected business performance.

By considering the two properties together, Ortus was able to support the acquisition while providing the borrower with time to execute the wider refurbishment and trading strategy.

Who Was Involved

• Ortus Secured Finance Team – Individual names not supplied

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A Few Takeaways From the Market This Week

Larger and more complex portfolio refinances continue to demonstrate the importance of coordinated execution.

MS Lending Group's six-property transaction highlights how lenders must navigate multiple securities, legal representatives and valuation requirements while managing demanding completion deadlines. Having existing valuations readdressed can be particularly valuable when time is limited.

Strong underlying security and credible disposal strategies remain central to commercial bridging.

HREF's Jersey transaction shows how fully let commercial assets can support a structured sales-led exit, providing borrowers with time to achieve their disposal objectives while lenders assess the quality, location and demand for the underlying properties.

Below-market-value acquisitions require a different approach to assessing leverage.

DCI's Luton facility demonstrates why the purchase price does not always reflect the value of the underlying security. Where a genuine discount can be established, specialist lenders may be able to provide higher levels of acquisition funding without relying exclusively on standard purchase-price-based criteria.

Projected trading performance can be an important consideration in commercial property lending.

Ortus Secured Finance's two-pub transaction demonstrates how lenders can assess the anticipated impact of refurbishment works and business improvements. Structuring retained interest around these plans can help borrowers manage cash flow while working towards a longer-term refinance.

Established broker relationships continue to help facilitate complex transactions.

From MS Lending Group completing its 30th transaction with UKMC through Tom Herbert to DCI supporting a returning broker and borrower, these cases demonstrate the value of established relationships, communication and familiarity with lenders' underwriting approaches.

The exit strategy remains fundamental, regardless of the property type or loan size.

Across the four deals, repayment strategies include portfolio restructuring, property disposals and longer-term refinancing supported by improved trading performance. Each highlights the importance of matching the funding structure and loan term to a realistic borrower business plan.

Specialist lending is about understanding the complete transaction, not simply the initial funding request.

Whether considering six properties across different locations, commercial offices in Jersey, an acquisition below market value or two operating pubs, these transactions reinforce the role of experienced underwriting in delivering solutions to borrowers with different requirements.

 

Have a Transaction Worth Sharing?

If you've completed a notable real estate finance transaction and would like it featured in a future edition of Tuesday's Top Transactions, we'd love to hear from you.

Sharing successful deals helps showcase innovation across the market while providing valuable insight for brokers, lenders and property professionals following the latest lending activity.

 

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