At a glance
GRE Capital provided a 12-month senior bridge of £7.11m secured against a mixed use portfolio held in long term family ownership. The core security is a mixed-use estate on the corner of Shepperton High Street and Green Lane, comprising two residential blocks and two commercial parades, together with an office in Chippenham and an industrial unit in Bath.
The brief
The borrower needed to refinance an existing senior facility and fund the completion of a substantial refurbishment programme already underway across the residential and commercial accommodation. With works finishing and units still to let, income had not yet caught up with the portfolio’s potential.
The GRE solution
GRE Capital provided a 12 month facility with a retained interest element sized specifically to cover the gap between current passing income and a fully let position, so debt service was never dependent on the lease up running to plan. The primary security occupies a prominent position in Shepperton’s principal retail parade, 150m from the station and its direct services to London Waterloo, with an established mix of national and independent occupiers alongside.
The outcome
The facility took out the incumbent lender and funded the works through to completion, so the remaining units could be finished properly and brought to market rather than sitting part built while the borrower looked for terms. The lease up is now underway across the vacant residential and commercial space, with rental income set to rise materially as it completes. A part built scheme in careful long term ownership was a reasonable risk to take at this level of leverage.
