Industrial Estate Finance for Commercial Property Investment

Deal Structure

• £1 million loan facility
• 60% Loan to Value (LTV)
• Interest rate: Base rate + 2.85%
• 1.5% arrangement fee
• Part repayment, part interest-only structure

Deal Summary

Our experienced property developer and investor identified an industrial estate that he wanted to add to his existing commercial property portfolio.

Before proceeding, he approached us to find out what industrial estate finance might be available. Given the prevailing market conditions, he was unsure whether lenders would be willing to support the purchase on competitive terms.

We started by carrying out detailed due diligence on the property. We reviewed the tenant profile, lease terms and wider investment fundamentals.

This allowed us to prepare a comprehensive funding proposal. We then presented the opportunity to lenders with a strong appetite for commercial property investment.

The response exceeded our client’s expectations.

We obtained multiple offers from a range of lenders, including both High Street banks and challenger banks. This gave the client several options to consider rather than relying on a single lender.

The client ultimately selected a £1 million commercial property loan at 60% Loan to Value.

The facility used a part repayment and part interest-only structure. This approach gave the client a balance between reducing the outstanding loan and managing monthly repayments.

The chosen lender also offered a competitive interest rate of Base rate + 2.85%.

The Outcome

By presenting a detailed funding proposal to the right lenders, we secured several financing options for the purchase of the industrial estate.

The final structure gave our client the combination of leverage, repayment flexibility and competitive pricing he was looking for.

This case demonstrates the value of approaching the right lenders with a clear analysis of the property, tenants and lease structure. Even in challenging market conditions, suitable industrial property finance may be available for strong commercial investment opportunities.

If you are looking for industrial estate finance or commercial property investment funding, Positive Commercial Finance can search a wide range of lenders to identify suitable finance options for your investment.