Christie Finance secures £4.7m equity release facility from industrial units to support hotel refurbishment programme

The client approached Christie Finance with a requirement to unlock capital from their existing property holdings to fund a significant refurbishment programme across their hotels. With funds required within a tight timeframe of less than three months, Christie Finance was instructed to source a funding solution that could be delivered quickly while meeting the client's long-term objectives.

To facilitate the transaction, Christie Finance leveraged two investment properties within the client's wider portfolio. The assets comprised of a petrol filling station investment let to a national operator and an industrial complex occupied by a blue-chip tenant alongside a mix of private tenants and SMEs.

Following a comprehensive funding exercise, Christie Finance arranged a £4.7 million facility with a challenger bank capable of meeting the required completion deadline. Multiple funding offers were sourced and presented to the client, ultimately resulting in a facility structured on a five-year term with interest-only payments and pricing of 3.75% above base rate.

As part of the process, Christie Finance coordinated updated valuations from historic Red Book reports and successfully negotiated a funding package that required no personal guarantees from the borrower, an uncommon achievement for a transaction of this size.

Ram Kakar, Head of Real Estate at Christie Finance, comments, "It was great to support our client with their capex requirements across their hotel portfolio. Unlocking capital through leveraging alternative investments within their property portfolio was deemed the most suitable route to support the ongoing refurbishment programme."

"Whilst noting the sense of urgency, we also reduced the margin the client was paying previously and ensured the security structure was in line with their expectations. By approaching multiple lenders and creating competition, we were able to secure a facility that met both the client's timeline and longer-term objectives."