Specialist lender Aspen Bridging has completed a £950,000 commercial bridge-to-let facility for a seven-storey office building on Temple Row in Birmingham’s central business district, overlooking St Philip’s Square.
The transaction was completed within 10 days to facilitate an auction purchase of the 6,000 sq ft mid-terrace period building. The borrower’s business had previously occupied the property before acquiring it at auction.
Finance structure
The facility comprises a commercial bridge agreed at 0.89% per month over nine months, transitioning to a buy-to-let period at 6.49% per annum for two years. Aspen structured the deal without requiring a valuation to meet the auction timeframe.
The borrower intends to implement an OpCo-PropCo structure following completion, with one of its companies becoming the sole tenant. The planned exit strategy involves refinancing onto a commercial buy-to-let product.
Senior underwriter Laura Randall processed the application under Aspen’s single-point-of-contact service model.
Product changes
Earlier in 2024, Aspen modified its bridge-to-let product by reducing rates and extending the combined term to up to five years. Applicants can now access a bridge or development loan for up to 24 months, followed by a buy-to-let period of up to three years.
Jack Coombs, chief operating officer at S&U PLC, Aspen’s parent company, said: “Auction purchases demand speed and certainty. Our ability to complete within 10 days, while structuring a solution that supports the borrower’s longer-term refinance strategy, highlights the flexibility and responsiveness that underpins Aspen’s product propositions and commitment to best-in-industry service levels.”
The transaction reflects continued activity in Birmingham’s commercial property market, where occupiers are increasingly seeking ownership opportunities in the city’s central business district.
