Rikvin Capital financed a mixed portfolio of apartments, terraced, and semi-detached properties in Blackpool operated as HMO.
- The client was looking to obtain a loan from banks to finance its acquisition of tenanted properties.
- However, due to no prior track record, the banks turned down the loan despite the properties having existing long-term tenant leases and positive cash flows.
- Rikvin Capital looked at the big picture and was able to offer a loan of £5,000,000 against a valuation of £6,250,000.
- The loan was secured against the 149 properties with a Loan to Value (LTV) of 80% for a period of twelve months with an option to extend.
- The property was held in a UK limited company which was owned by a Jersey Holding Company PCC structure.
- This meant that Rikvin Capital had to complete due diligence on both onshore and PCC structure entities.
- By evaluating the cash flow of the current properties, Rikvin Capital was able to provide the loan to complete the deal.
- Due to the funding provided by Rikvin Capital, the client will now be able to apply for a loan with the banks by showing a proven track record.
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