Real Estate Finance

The company needed to replace its existing alternative lender facilities with a senior debt facility from a pillar bank.

It was crucial to obtain loan terms that would be more favourable than the existing ones.

The period property involved was likely to present several challenges for a pillar bank.

The overall company holding and tax structure was complex, considering the asset and location.

The transaction required liaising with multiple parties including legal, accountancy, valuers, building surveyors, tax advisors and the bank.

Before commencing this period property transaction, we identified and communicated to the client the key areas where we anticipated challenges might arise. We explained how these issues could impact our target timeline and outlined strategies to mitigate them as they arose.

We negotiated with three pillar banks to secure competitive terms for the senior debt facility. By evaluating and comparing offers and then re-engaging with each bank in turn, we significantly improved upon the original offers, ensuring the best possible terms for the client. This resulted in a substantial senior debt facility with highly favourable terms, greatly enhancing the client’s financial position compared to their previous arrangements.

Through thorough negotiations, we achieved favourable interest rates, repayment terms and conditions that aligned with the client’s financial goals. The terms provided by the pillar banks were significantly more advantageous than those from the existing alternative lender, despite the higher level of conditionality attached.

We liaised with all relevant parties, including the bank, legal advisors for both sides, accountants, tax consultants, valuers and surveyors, to streamline the refinancing process. Our effective stakeholder coordination and weekly calls ensured that all documentation and compliance requirements were met efficiently, facilitating a smooth transaction.

By collaborating closely with our tax and legal colleagues, we successfully got the bank comfortable with the overall company holding and tax structure, which had been refined with a focus on mitigating close company surcharges.

We leveraged the period property secured by a government contract as collateral, enhancing the loan’s attractiveness to the pillar banks. By optimising the use of collateral, we provided robust security for the senior debt facility, meeting the lenders’ requirements and securing attractive financing terms.

The CKS team demonstrated exceptional ability to negotiate the most favourable terms, ensuring the client’s financial interests were prioritised.

Early and proactive identification of potential property and structural concerns enabled us to frame a proposal and implement a property-specific plan that ultimately ensured the bank was comfortable and completed the transaction.

CKS seamlessly coordinated with various stakeholders to ensure a smooth and efficient transaction process.

By agreeing on an appropriate hedging strategy with the client, we secured an extremely favourable five-year fixed rate loan before interest rates changed adversely, saving the client an additional €500,000 over the life of the loan at current rates.

Our holistic approach to dealing with all counterparties ensures efficiency and compliance, preventing delays and miscommunications.