Tuscan Capital completes 130-property portfolio acquisition

Tuscan Capital has completed a 130-property portfolio acquisition bridge in 21 days.

It agreed terms with the borrower for a £9m, 12-month term funding package at a monthly interest rate of 0.85%.

The funding facility was for a developer client looking to acquire a diverse portfolio of mixed-use, commercial and residential real estate assets.

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The lender said its Birmingham office was asked to step in to help a West Midlands-based property developer fund the purchase of a large portfolio of disparate properties spread across the midlands.

The developer had agreed to buy the portfolio from a well-known brewery, which was off-loading assets.

Contracts were exchanged on Christmas Eve, 2020, but completion was stalled after the purchaser’s banking partners withdrew their support.

Tuscan Capital said it was first contacted in mid-February this year as the developer needed an urgent bridging facility from a lender who could deliver funding reliably and quickly to meet the completion deadline of mid-March.

The lender further confirmed that it fully funded the purchase as the borrower put some of its own unencumbered property stock into the deal.

As a result, Tuscan Capital said its LTV exposure was under 60% taking into consideration the full open market value of the security.

BNP Paribas Real Estate in Birmingham was selected to lead the valuation process, while Howard Kennedy LLP was chosen to conduct the legal due diligence element.

Colin Sanders, chief executive of Tuscan Capital, said: “Bringing this deal to a successful conclusion on 26th March, 2021, meant that our client met their deadline, which was a huge relief for everybody.

“Turning the deal around in just 21 working days is proof, I think, that with the right team in place and a positive, proactive mindset, even the most complex of transactions can be brought to a speedy resolution. In short, where there’s a will, there’s a way.

“I must make mention of our superb professional partners on this deal, without whom we could not have delivered for our client.

“Richard Gill and his team at BNP Paribas Real Estate did a sterling job of valuing the portfolio inside two weeks.

“The footwork involved in the inspection of such a wide range of assets at a time when lockdown restrictions added to the complexity of the situation was very impressive.

“Producing the valuation report for such a large bundle of diverse property assets, and then verifying the title plans, involved a number of hands-to-the-pump and much working around the clock.”