Inspired Lending has provided a £4 million structured funding facility for the purchase and refurbishment of a portfolio of dilapidated Grade II listed residential outbuildings, formerly part of a large private estate in the Cotswolds.
The borrower acquired the properties, which were being sold off by the owner of the wider estate currently operating as a hotel, with a vision to restore them to a high standard before selling them individually.
The case, introduced by property finance and search agency RockCap, involved a funding package that provided a Day 1 net loan of 60% of the purchase price, along with 100% of the intended works costs, totalling £2 million.
Inspired Lending collaborated with both the broker and the borrower to structure a flexible solution tailored to their unique financial and business requirements.
PRO-RATA BASIS
To accommodate the borrower’s uncertain cash flow needs, the facility was structured to charge fees on a pro-rata basis as works funds are drawn rather than applying all fees upfront.
Inspired Lending also provided multiple alternative funding options, enabling the borrower to explore different financial scenarios before selecting the most suitable structure.
The borrower intends to take a phased approach to the refurbishment, ensuring that each property is meticulously restored before being sold individually, thereby maximising the portfolio’s overall value.
BESPOKE APPROACH
Gavin Diamond (main picture), Chief Executive of Inspired Lending, says: “This project required a bespoke approach to meet the borrower’s unique requirements, particularly in structuring a facility that aligned with both their project needs and their fluid cash flow position. Providing multiple funding options and a phased fee structure allowed them the flexibility to move forward effectively.
“Working closely with both the team at RockCap and the borrower, we were able to structure a solution that not only facilitated the restoration of these historic properties but also provided a clear path for the borrower to optimise their investment returns. It’s always rewarding to support projects that breathe new life into heritage properties while affording the client the ability to maximise their returns.”
COLLABORATIVE AND FLEXIBLE
Alex Lundberg, Director at RockCap, adds: “This transaction was a great fit for a privately funded lender, given the multiple securities, time sensitivity, and evolving leverage requirements. Inspired Lending were collaborative and flexible from the outset. Owen Bentley gave both us and the borrower confidence in their appetite for the deal and their ability to deliver an optimal funding solution within tight timelines.
“During execution, Gavin Diamond was instrumental in restructuring elements of the deal and managing key stakeholders through the inevitable pinch points. We look forward to seeing the project progress and working with both the borrower and Inspired again in the future.”
