Recognise Bank has provided a £1.836 million bridging loan to facilitate the acquisition of a mixed-use commercial property in Harlow, Essex. The transaction demonstrates the continued role of short-term finance in enabling businesses to secure commercial premises within tight timeframes.
The 18-month serviced bridging facility was structured at 57% loan-to-value and arranged through Matt Stevenson, commercial manager at Watts Commercial Finance. The property comprises residential accommodation, industrial units and yard space, and will serve as the new operational base for a civil engineering SME.
Timeframe pressures drive bridging solution
The borrower required completion within several weeks, a timeframe that necessitated bridging finance rather than conventional commercial mortgages. The planned exit strategy involves refinancing into longer-term finance once the acquisition is complete.
Paul Bagan, senior lending manager at Recognise Bank, said: “The client had identified a site which suited the needs of its trading business, but the key requirement was being able to complete the acquisition within a matter of weeks. We took a practical view of the property and the borrower’s plans for the site, working closely with Matt and the Watts Commercial Finance team to put the right bridging structure in place.”
Commercial finance market context
The transaction reflects broader activity in the commercial property sector, where bridging finance continues to serve businesses requiring rapid deployment of capital. While residential rental yields have reached 5.9% nationally, commercial property financing often involves more complex structures tailored to specific business requirements.
Matt Stevenson, commercial manager at Watts Commercial Finance, commented: “The client had identified the right premises for the next stage of its business, so it was important to work with a lender that understood the requirement and could make decisions within the timeframe we were working towards.”
The deal adds to recent activity in the commercial property finance sector, where lenders have maintained appetite for mixed-use assets despite broader market headwinds. Harlow, located in west Essex with transport links to London, has seen steady demand for commercial and industrial space from SMEs seeking operational premises outside the capital.
