£1.35 Million Commercial Bridging Loan to Acquire Mixed-Use Property

A £1.35 million commercial bridging loan enabled a client to acquire a prime mixed-use property in a strategic location while awaiting longer-term financing.

The client identified a property combining retail units on the ground floor with offices above. The seller required fast completion due to a previous sale that had collapsed, creating a time-sensitive opportunity. Traditional commercial mortgage lenders could not meet the tight deadline, necessitating a short-term bridging solution.

The Challenge

The client faced several challenges:

• Completion required within 21 days
• Property required partial refurbishment to meet lender criteria for long-term financing
• Preservation of working capital for operational and investment purposes

Without rapid funding, the acquisition opportunity could have been lost.

The Solution

Global Bridging Finance arranged a £1.35 million bridging loan secured against the property, with cross-collateralisation using another commercial asset in the client’s portfolio.

The facility was structured over a 12-month term with interest retained, allowing the client to:

• Complete the acquisition within the required timeframe
• Begin refurbishment works immediately
• Maintain liquidity for operational needs

By structuring the loan across multiple assets, the lender could offer full funding with confidence.

The Exit Strategy

The client’s exit strategy involved:

• Completion of refurbishment and tenant stabilisation
• Refinancing the bridging loan into a long-term commercial mortgage
• Maximising rental income and valuation to repay the facility

This clearly defined exit reassured both borrower and lender.

The Outcome

The commercial bridging loan allowed the client to:

• Secure a mixed-use property in a prime location
• Avoid losing the acquisition due to funding delays
• Maintain liquidity for refurbishment and operational costs
• Transition smoothly to long-term financing once the property performance is stabilised

This case demonstrates how commercial bridging finance provides speed, flexibility, and certainty for investors and businesses pursuing time-sensitive property acquisitions.