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Providing funding for an international property portfolio

This case study examines a recent financing deal where a client approached us with a specific need to refinance existing debt. Despite having a healthy loan-to-value ratio, the client encountered obstacles with their current lender because of the cross-border financial structures of their existing lending arrangements. This situation led them to search for a more flexible and accommodating solution.


15th April 2024


Client Background

Our client, a successful entrepreneur, sought a £9m loan to refinance existing debt held with another lender.


Asset Portfolio

The asset portfolio holds a value of £18.3m and maintains a solid loan-to-value (LTV) ratio of 48%. It comprises six freehold and long leasehold properties, with 40 income-producing units, in prime areas across central London and the home counties.


The Key Challenge

A unique aspect of this refinancing arrangement is the presence of Isle of Man entities housing the assets.

Chris Smith, Commercial Banker at Arbuthnot Latham, said:

“When our client wanted to refinance their debt, they found themselves in a tough spot. Their longtime lender, no longer interested in financing international deals, including those involving assets held through Isle of Man structures, presented an obstacle.”


The Deal

Despite the complexity of managing offshore components, our dedicated real estate team demonstrated the agility and expertise required to meet our client’s diverse needs, offering them a £9 million loan, which included financing the arrangement fee.

  • Serviceability: We carefully assessed various loan options for lending at 49% LTV — both variable and fixed. After thorough consideration, we chose the fixed option, aligning it with the client's best interests.
  • Recovery Loan Scheme (RLS): We utilised the RLS to offset capital allocation, applying it to a small proportion of the total debt.
  • Financing the Arrangement Fee: As requested by the client, we incorporated the arrangement fee into the approved loan amount.
  • UK Special Purpose Vehicle (SPV): The client established a new UK SPV as the borrowing entity to allow us to streamline the refinancing process while adhering to regulatory standards and compliance.


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Related services

Commercial Banking  •  Real Estate Finance 


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