StreamBank has provided a £1.5 million bridging loan to fund an experienced property investor’s acquisition of a £3 million shopping centre in Peterlee, County Durham. The 12-month facility was secured against a residential property in Ashbourne, Derbyshire, enabling the borrower to bridge a funding gap after commercial finance covered the majority of the purchase.
The loan was structured as a first legal charge over a Grade II listed property valued at £3.75 million, resulting in a loan-to-value ratio of 44%. The property comprises multiple holiday-let units, additional land and ancillary accommodation. StreamBank advanced £1.5 million net on a gross facility of approximately £1.65 million.
Complex security considerations
The transaction presented several technical challenges. The security property was covered by multiple titles and its Grade II listed status required additional legal review. Energy Performance Certificate documentation also required updating after completion, though this did not prevent the loan from proceeding.
According to Aiman Maklad, business development manager for London and the south at StreamBank, the complexity of the security did not undermine the lending proposition. “There were several points here that needed closer assessment, from the Grade II listed status and multiple titles through to an exit that relied on refinancing and equity elsewhere in the portfolio,” Maklad said.
The borrower’s exit strategy depends on refinancing the residential security whilst releasing equity from other properties within their portfolio. StreamBank cited the investor’s substantial equity position and strong credit profile as key factors in approving the facility.
Bridging finance applications
The case demonstrates how bridging loans can facilitate portfolio management by releasing capital from existing assets to enable time-sensitive acquisitions. As due diligence requirements become more stringent across the property sector, lenders are increasingly required to assess complex security arrangements involving listed buildings and multiple titles.
The regional shopping centre acquisition comes at a time when commercial property investors face tighter timescales for completing transactions. With credit risk management gaining prominence across the property sector, lenders are focusing on borrowers’ overall financial strength rather than individual security characteristics alone.
The transaction highlights the continued use of bridging finance as a tool for experienced investors managing portfolios across residential and commercial property sectors, particularly where conventional lending timescales do not align with acquisition opportunities.
