Semi-Commercial Auction Purchase with Complex Funding Structure

Our client had secured a semi-commercial property at auction and needed to complete the purchase within a fixed six-week deadline. The asset, located in West London, comprised three commercial units and an adjoining residential flat. One unit was vacant, which added complexity and meant the case required a lender comfortable with mixed-use property and part-vacant assets.

The client intended to purchase the property through a newly formed SPV using a combination of personal funds, an intercompany investor loan and short-term bridging finance. The intercompany loan was provided from a third party based in Dubai, which added a further layer of detail that needed a lender with clear appetite for non-standard contributions.

The combination of personal funds, investor capital and an overseas intercompany loan reduced the pool of lenders suited to the transaction. Many lenders can be cautious where international or intercompany funds are involved, so identifying a lender with the right appetite was essential.

The part-vacant commercial unit presented a further challenge, as lenders typically prefer fully let assets for servicing and coverage. With the fixed six-week auction deadline, it was crucial to secure a lender able to work at pace while comfortably accommodating the mixed-use profile and the non-standard funding structure.

Romit Patel, Associate Director in LDN Finance’s Specialist Finance team, targeted lenders with the capability and appetite to support a semi-commercial bridging loan with layered funding and a time-critical completion. Drawing on his market knowledge and experience in placing complex mixed-use assets, he presented the case with precision to ensure lender engagement and momentum from the outset.

Romit identified a lender whose criteria aligned with the client’s structure and worked closely with the solicitor to ensure the intercompany loan was fully documented and compliant with requirements. With no margin for error due to the auction timeline, he maintained clear, consistent communication between the client, solicitor and lender to keep the case progressing smoothly and ahead of schedule.

LDN Finance secured a 70 percent loan-to-value bridging facility at 0.85 percent per month, assessed against open market value rather than a 180-day figure. The lender was comfortable with the mixed-use profile, the part-vacant element and the intercompany loan, enabling the purchase to complete within the fixed six-week deadline.

The facility gave the client the breathing room to let the vacant commercial unit, renegotiate existing leases and prepare the asset for term refinancing. This strengthened both rental yield and long-term value, creating a clear route to the next phase of their strategy.

This case highlights LDN Finance’s structured and assured approach to semi-commercial bridging and our expertise in delivering efficient solutions for complex auction purchases and mixed-use property acquisitions.