Case Study · United Kingdom

Property developer purchases commercial building at deep discount

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Property developer purchases commercial building at deep discount

Savvy Property Developer Snaps Up Commercial Building at Deep Discount

A property developer in London has secured a fantastic opportunity by purchasing a commercial building at a deep discount. This strategic move allows the developer to renovate and reposition the property for maximum return on investment. The deep discount provides a significant advantage and sets the stage for long-term success in the highly competitive property market.

Related: Read about when Rikvin Capital enabled a foreign investor to leverage industrial property for working capital

  • Location: Brentford, London
  • Market Value: £28,900,000.00
  • Loan Amount: £20,000,000.00
  • Loan-to-Value: 69.20%
  • Duration of Loan: 24 Months
  • Payment Schedule: Monthly
  • Asset Type: Commercial Building
  • Completion Time: 3 weeks

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FAQ

Yes. The Brentford case lent £20 million against a £28.9 million commercial building (69.20% loan-to-value) in 3 weeks for a developer buying at a discount. Large below-market commercial acquisitions are well-suited to short-term private financing because banks struggle with the deep-value pricing.
We lend against the lower of purchase price or independent valuation. The Brentford deal closed at 69.20% loan-to-value of purchase, but on the £28.9M market value the effective loan-to-value was lower and safer. This makes deep-discount purchases attractive to fund.
12 to 24 months. The Brentford loan ran 24 months to give the developer full time to renovate, reposition and refinance into a long-term commercial loan or sell at the higher post-renovation value. Longer terms suit large repositioning projects with a clear value-creation plan.