Debt Forgiveness £5m+ Portfolio Refinance for Developer in North West

A North West based property developer of some years’ standing approached Genie Lending with a view to assisting with the restructuring of his property and debt portfolio.

The client had historically borrowed from a lender who had withdrawn from the market and as a consequence of that withdrawal had asked the client to refinance their £6.25m loans, setting a deadline for that to take place.   Failure to hit that deadline would mean the debt would be transferred to a Hedge Fund which was acquiring the lender’s assets.  As a sweetener to the transaction though, the incumbent lender was prepared to offer a substantial write down in the capital amount outstanding if redemption could be achieved within a specific timeframe.

A mixed property portfolio existed comprising commercial investments, land, single residential units and multiple unit properties which the client had built during his group’s development phase with multiple companies also involved in the ownership structure.  Also included were two blocks of flats of 10 and 16 units respectively with commercial units on the ground floor, all in all a challenging portfolio.

How we Helped with Debt Forgiveness

A detailed analysis by our Commercial Finance Manager resulted ultimately in an introduction to two mainstream lenders both of whom were prepared to assist at the 60% Loan to Value ratio required and Genie Lending and the client were in the enviable position of being able to negotiate finer terms than expected, ultimately delivering the whole refinance at 3% over Bank of England base rate.  This, in itself, was a lower rate than previously paid to the bank being redeemed and, added to the £0.75m write down in capital amount outstanding, added huge value to both the balance sheet and P&L of our client.