£2.5 Million Commercial Bridging Loan for Property Development

Client: Commercial Property Developer
Loan Type: Commercial Bridging Loan
Loan Amount: Circa £2,500,000
Property Value: Circa £4,200,000
LTV: 60%
Purpose: Funding for a development project

Case Overview

Global Bridging Finance was approached by a commercial property developer seeking to finance a substantial development project. The developer had secured a large commercial building in a prime location, valued at £4.2 million. The property was intended for conversion into a mixed-use development, comprising retail space on the ground floor and office units on the upper floors. The developer required £2.5 million to fund the initial stages of the development.

The challenge lay in the fact that the developer needed to move quickly to secure the property and begin the development process, but traditional bank financing options were either too slow or too rigid to accommodate the project’s unique needs. The developer approached Global Bridging Finance for a commercial bridging loan to secure the funds quickly and bridge the gap until longer-term finance could be arranged.

The Solution

Global Bridging Finance identified an appropriate lender with the flexibility and speed to accommodate the developer’s urgent requirements. We arranged a £2.5 million commercial bridging loan secured against the property at an LTV of 60%, allowing the developer to access the necessary funds without delay.

Our team worked with the lender to ensure the loan terms aligned with the developer’s timeline, providing a tailored solution that included flexibility in repayment and the ability to draw down funds in stages as the development progressed. We also facilitated a swift valuation and legal due diligence process to ensure the loan could be approved quickly.

The Outcome

With the £2.5 million commercial bridging loan in place, the developer was able to secure the property and begin the conversion project without delay. The funds were used to cover the initial development costs, including planning fees, initial construction work, and other pre-development expenses.

After completing the initial phases of development and securing tenants for the office units, the developer was able to refinance the loan into a more permanent financing solution, reducing its interest rate and extending the repayment period. This allowed the developer to continue with the project, which is expected to generate substantial rental income once fully leased.

The commercial bridging loan enabled the developer to proceed promptly with the project, securing the property and covering early-stage costs, while providing flexibility to transition to a long-term financing solution once the development was underway.