"I recommended a revolving credit facility - refinance the existing debt of £3.5m in the first instance and then providing a pre-agreed facility that could be on standby to finance new opportunities, with funds available to draw down in 48 hours"
- Kelly Rule - Sirius Finance
Sirius Finance has announced that it has completed an £8m loan, secured on a portfolio of 24 shops, restaurants, offices, holiday lets and a dry cleaners.
One of the main complexities within the deal was that all the properties were held within a family trust spanning 35 years.
Kelly Rule from Sirius worked with the clients well in advance of the expiration of the existing funding arrangement to find a lender that was comfortable with the structure of the portfolio and ensure the new loan was in place on a 5-year fixed rate at 5.47%.
Kelly Rule, Senior Associate at Sirius Finance, says: “The clients were keen to expand their portfolio and were being offered new properties regularly, but were being outbid by cash buyers so they needed a solution.
“I recommended a revolving credit facility - refinance the existing debt of £3.5m in the first instance and then providing a pre-agreed facility that could be on standby to finance new opportunities, with funds available to draw down in 48 hours. The maximum credit facility on offer was £6.75m but the clients opted for a conservative £4.5m to avoid over-stretching themselves.
“The unique condition with this product is that no interest is charged on the pre-agreed facility and there are no non-utilisation fees. The clients can now act as cash buyers with the ease of the simple drawdown as and when they require it.”
