£22M first charge loan funding the comprehensive refinance and equity release of four branded regional hotels.
Delivered a £22M first-charge refinance, with equity release, against a portfolio of four branded hotels across the English regions and South West, completed at 65% loan-to-value. With an equity shortfall but the hotels trading strongly, we proposed carving out a higher ground rent over a long term and selling that long-income freehold stream to a separate lender — while we lent comfortably for five years against the leasehold. The result refinanced existing debt, released capital to the sponsor and bridged the equity gap without compromising leverage.
How we structured it
Monetized freehold income
Suggested selling the long income stream on the freehold to part fund the equity.
Synthetic lease execution
Consciously lent money on the leasehold with the synthetic lease structure.
Relationship-driven refinance
Continuous engagement and exchange of idea with the Borrower enabled to refinance the asset while maximizing returns for the borrower and bolstering relationship capital.
