CapitalRise Closes £15.7m Bridging Loan Portfolio in Prime North London

Specialist prime property finance firm CapitalRise has announced the completion of a bridging loan portfolio in prime areas of North London. Totalling over £15.7 million, the facility will refinance existing debt secured across four sizeable properties and provide the Borrower time to market and sell the assets.

The properties are located in sought-after London locations – St John’s Wood and Hampstead – areas in which CapitalRise specialises. The lender is increasingly providing development, mezzanine, and bridging finance in prime locations across the wider South East, as it continues to diversify its loan book. Nonetheless, prime London remains a particular specialism for CapitalRise, which was co-founded by the visionaries behind luxury property developers Finchatton and Valouran.

This complex transaction demonstrates CapitalRise’s expertise in structuring bespoke lending solutions for intricate cases. CapitalRise structured a tailored bridging loan with cross-collateralised security and included a part-rolled, part-serviced interest structure to provide the client with flexibility. The borrowing entity is an offshore SPV based in the British Virgin Islands, and CapitalRise has the experience and capabilities with lending to offshore vehicles and dealing with complex onboarding requirements.

In addition, the sales bridge facility was required to complete simultaneously with another lender, who were providing a specialist BTL facility to refinance the client’s wider income-producing portfolio. Therefore, the facility required speed of delivery and flexibility, which the CapitalRise team demonstrated to ensure the loan was completed on time and to the client’s satisfaction

This facility reinforces CapitalRise’s commitment to meeting the high demand for bridging finance in the market. The facility was agreed at a Loan to Value (LTV) ratio of 75%, a relatively high leverage that reflects CapitalRise’s confidence in the Borrower and the marketability of these prime London assets.

Raf Chowdhury, Director at CapitalRise who originated the loan, commented:

“We are thrilled to have closed this bridging loan so swiftly, especially considering some of the more challenging factors unique to this particular facility. The transaction demonstrates CapitalRise’s commitment and agility to deliver tailored finance solutions for property professionals.

“The properties are high-quality assets in desirable residential locations that will provide liquid and marketable security for our loan. We are grateful for the introduction by one of our trusted strategic partners, and we enjoyed collaborating with TLT LLP on the legals.”