£4.2 Million Commercial Bridging Loan to Acquire Mixed-Use Asse

Client Background & Requirement

The client was an experienced UK-based property investor expanding their commercial portfolio. They had agreed to purchase a mixed-use property comprising ground-floor retail units with residential flats above, located in a strong regional town centre.

The asset was being sold on short notice, and the vendor required a rapid exchange and completion. Although the client had a long-term refinancing strategy in place, traditional lenders were unable to meet the required timescales due to the property’s mixed-use nature and the need for updated tenancy arrangements.

The client required fast, flexible funding to complete the acquisition while allowing time to stabilise income and transition to a longer-term commercial mortgage.

The Challenge

The key challenges were the compressed completion deadline and the asset's complexity. Several leases were due for renewal, and one retail unit was temporarily vacant, limiting options with mainstream lenders.

The client needed certainty of funds, a lender comfortable with mixed-use security, and a structure that would support their medium-term exit strategy without imposing early refinancing pressure.

The Solution

Enness arranged a commercial bridging loan of £4.2 million, structured at circa 65% loan-to-value against the agreed purchase price. The facility was secured against the mixed-use property, providing the client with sufficient time to re-let the vacant unit and renegotiate commercial leases.

The lender took a pragmatic view of the asset’s underlying value and future income potential, enabling swift credit approval and streamlined legal processes.

Outcome

The transaction was completed within 12 working days, allowing the client to secure the property without disruption. The bridging facility provided flexibility during the asset management phase, with a clear exit via refinance once income was stabilised.

This commercial bridging loan enabled the client to move decisively on a time-sensitive opportunity while maintaining alignment with its long-term investment strategy.