Recognise Bank has completed a £1.07m bridging loan to support the refinance of two care homes in Bristol and Wales.
The owners of the two care homes needed a short-term facility to repay existing borrowings while raising a small amount of additional equity to support ongoing upgrades to the assets. Pomegranate Commercial Finance, a broker specialising in commercial and specialist lending, introduced the deal through Paul Mak.
The bridging loan was structured over a 24-month term at 60% LTV. Recognise Bank worked closely with the broker to understand the position of the homes, including the latest CQC reports and the borrowers' plans to continue making improvements.
- Loan size: £1.07m
- Term: 24 months
- LTV: 60%
A practical view was taken on the strength of the underlying business operations and the borrowers' commitment to investing in the properties. Heather Mitchell, lending manager at Recognise Bank, led the deal, supported by the wider lending and operations team.
Structuring a specialist bridging loan
"Care home assets require careful assessment, especially when it comes to understanding both the current position of the trading performance and the owners' plans for improvement," said Heather Mitchell, lending manager at Recognise Bank (pictured).
"We worked closely with Paul to structure a facility that allowed the existing debt to be refinanced while giving the borrowers the capital and time needed to continue investing in the homes," she added. "The clear improvement plan allowed us to take a pragmatic view and support experienced SME clients in a specialist sector."
Paul Mak, managing director at Pomegranate Commercial Finance, said Recognise Bank took the time to understand the case from the outset. "This was a specialist transaction where Recognise Bank took the time to understand the merits of the case from the outset and worked collaboratively to deliver a facility that meets the owners' requirements now and gave them the breathing space to support their future plans," he said.
Recognise Bank continues to build on its growth, expanding its lending proposition and operational capability to support more brokers, property professionals and SMEs across the UK.
If you’re exploring bridging or development finance, get in touch and we can connect you with the right lender.
