Partner Earns £100k on a Single Deal!
Deal Type: Development Finance
Loan Amount: £10 Million
Partner Commission: £100,000
Despite quoting on a development that didn’t progress, a locum Finance Director (FD) had been so impressed with terms secured by White Rose that the same FD asked us to quote for their latest client.
The relationship with this FD was managed by one of our Appointed Representative (AR) partners from his home in Spain, whilst the FD’s newest client was a family firm who had expanded from retail businesses into operating an extensive property portfolio.
This expansion of the family firm had been going on for many years, to the extent that the client now held almost £100m in commercial investments with the dividends paid out to a large number of family members.
The family was in the pleasant position of having very little debt on current properties and so wanted to build, rather than buy, more commercial properties to generate more income for the family.
A loan of £5m for development became £10m and like a lot of corporate clients do, rather than borrowing short-term debt on the development, it was decided borrowing long-term on the currently portfolio was cheaper and less stressful – so £20m of property was found to be used as security for a sub 50% LTV loan.
Good clients, blue-chip tenants and good industrial properties in Chichester, Reading and Christchurch made this a Tier 1 deal at the corporate level of a prime bank.
This level of lend is just at the cusp where standard “boiler plate” loan agreements become more bespoke and the client was adamant on what they wanted from rental and tenant covenants.
As a corporate deal the bank engaged in the majority of these discussions on swaps and caps albeit the negotiation went on for longer than expected. Ultimately however a term sheet delivered on what the client wanted and the loan completed in two tranches.
The combination of support from David Fine at head office worked well whilst the AR was based overseas, and the bank paid out £65,000 on the entire £10m facility day 1.
In addition the AR had negotiated a broker agreement that took the total fee income up to 1% of the facility – so a gross fee income of £100,000 was generated.
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