The opportunity
A well-run group ready to simplify its borrowing
HBI Capital provided funding to a family-owned property investment group to refinance and consolidate existing borrowings ahead of a broader review of the group’s asset base.
Several facilities across several assets had become unwieldy to manage. Bringing them together into a single, short-term arrangement gave the group a clean position from which to decide what to hold, what to refinance and what to sell, without a deadline set by someone else.
Consolidation is not about borrowing more. It is about giving a good business the breathing room to make good decisions.
The structure
Secured across the portfolio, with a flexible exit
The loan was secured by a first charge against several income-producing commercial assets, supported by personal guarantees from the borrowers and a debenture against the property company. Rental income across the portfolio comfortably supported the facility through its term.
The intended exit was a strategic review of the group’s assets: refinancing onto longer-term arrangements, selling selected assets, or a combination of both. A term of up to 12 months gave the group the time to carry out that review properly, rather than being forced into a quick decision.
Why it worked
Three things that made this a straightforward yes
- 01
Income-producing security
Let commercial assets with established rental income, valued at £825k against a £500k facility, a conservative 61% LTV.
- 02
An established, well-run group
A family-owned business with a long history of holding and managing property, backed by personal guarantees and a company debenture.
- 03
More than one route out
With a portfolio of saleable, refinanceable assets, the exit did not depend on any single outcome.
