TAB has completed two linked bridging facilities totalling £4.5 million to refinance existing debt on commercial properties in Poole and Bournemouth. The transactions were finalised within seven days of the initial enquiry, despite what the lender described as a complex legal and beneficial ownership structure.
The first facility, for £3,477,000, is against a commercial property in Poole valued at £5,225,000, representing an initial loan-to-value (LTV) of 66.5%. The second facility provides £975,000 against a Bournemouth commercial property valued at £1.5 million, with an initial LTV of 65%. Combined, the facilities have an initial LTV of 66.2% against a total property valuation of £6.725 million.
Both loans are set for 24 months, with interest retained for the first month and serviced thereafter. The properties require different asset management approaches, including addressing vacant space in an office building in Poole and a large vacant commercial element in Bournemouth that may be subdivided.
The facilities include mandatory quarterly capital repayments, reducing the combined borrowing by £150,000 every three months. The loans are fully cross-collateralised and cross-charged, providing TAB security across both properties. The primary exit strategy involves selling the properties after reletting, or potentially seeking approval for residential conversion.