£2.4m Refinance for Commercial Property Development
Featured Snippet: Articus Finance arranged a £2.4m refinance for commercial property development, enabling an East London investor to repay bridging debt, consolidate finance, and release extra liquidity for new opportunities.
Introduction
Completing a £2.4m refinance for commercial property development often requires specialist knowledge and direct access to commercial lenders capable of understanding both the development process and investor ambitions. This case involved supporting an experienced property investor who faced the dual challenge of servicing an expensive bridging loan whilst simultaneously seeking liquidity for new ventures.
Client Background
The client was a UK national and seasoned property investor with a sophisticated portfolio. Their focus was commercial real estate in East London. The specific asset was valued at £3.8m and comprised two offices converted into a single 5,000 sq ft unit. The investor sought funds for two key purposes:
- Repay an outstanding bridging loan of £1.4m taken during the development phase.
- Unlock additional equity to pursue future investment opportunities in the commercial property market.
As a sophisticated investor, the client’s track record was strong. However, the existing bridging facility carried high costs, creating urgency to refinance swiftly.
The Challenge – £2.4m Refinance for Commercial Property Development
Arranging a £2.4m refinance for commercial property development presented structural challenges:
- Bridging loan pressure: The high-cost facility demanded immediate repayment, creating a time-sensitive refinancing window.
- Development phase: Works were nearing completion but not finalised, and tenants were yet to move in—often a sticking point for many lenders.
- Funding objectives: Beyond clearing debt, the client required surplus liquidity, further complicating lender appetite.
- Rate volatility: Base rates and commercial lending rates were rising during the process, potentially threatening terms.
Securing favourable terms in this environment required not just financial presentation but leveraging trusted relationships with specialist lenders.
Our Solution
Articus Finance engaged directly with a specialist commercial lender open to beginning refinancing before tenant occupancy or final works completion—critical in avoiding unnecessary bridging costs. Our process ensured:
- Immediate application before project completion, securing early approval.
- A negotiated facility worth £2.4m, tailored to refinance bridging and release further equity.
- Preservation of the initially quoted rate despite wider base rate increases during the transaction period.
- Additional liquidity granted due to the client’s proven sophistication and investment track record.
Close coordination between lender, solicitors, and the client ensured the refinance progressed seamlessly, with Articus steering the process to avoid delays and lock in advantageous terms.
Key Highlights
- Asset: East London commercial property totalling 5,000 sq ft.
- Value: £3.8m.
- Facility: £2.4m refinance.
- Primary purpose: Repay £1.4m bridging loan.
- Secondary purpose: Release capital for new commercial opportunities.
- Challenge: Project not fully let or completed at application stage, rising base rates, time urgency.
- Outcome: Successful refinance with preserved original rates and additional equity release.
Why Articus Finance Delivered
Completing a £2.4m refinance for commercial property development showcases the critical role of specialist brokers in commercial finance. Articus Finance leveraged independence and a deep lender network to unlock structured refinancing aligned with the client’s needs. By pre-empting potential delays and negotiating lender confidence in the borrower’s track record, we achieved certainty of execution with minimal cost exposure.
Our bespoke negotiation ensured not only bridging repayment but future liquidity, supporting the client’s continued growth as a commercial investor in London’s competitive property market.
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Final Thoughts
This case proves that securing a £2.4m refinance for commercial property development requires expertise, negotiation, and trusted lender relationships. Articus Finance delivered a structure that cleared expensive debt, protected against rising rates, and provided liquidity for new ventures—demonstrating strategic capability in complex, high-value commercial finance.
