The owner of a high-end retail outlet is looking forward to meeting the needs of business owners after securing £5.8 million in a combined loan for the expansion and refurbishment of his premises.
Deepak Mohindra is the second generation owner of Daminis Ltd, a popular retail outlet situated in a renowned Asian shopping district in Green Street, at the heart of London’s East End.
Committed to the future of the High Street, the successful entrepreneur worked with award-winning Redwood Bank to fund two separate projects – the conversion of his existing retail premises into a number of small rental units serving the local business community and a large refurbishment project involving the conversion and extension of a former restaurant into retail premises and flats.
The funding for the first deal was agreed within four days and the second deal within two days of application, providing a fast and flexible solution as Redwood Bank’s largest ever drawn deal.
Mr Mohindra took over the reins of Daminis Ltd following the death of his mother two years ago. The business, situated in the popular Forest Gate shopping area, ran successfully as a clothing brand from an iconic shop offering a multitude of outfits, from ethnic day wear to opulent bridalwear and occasionwear.
Redwood Bank was approached by Manish Babla of broker Sterling Professional Finance Ltd to step in after the more traditional High Street banks were not prepared to provide the necessary funding to complete the conversion of the former trading premises into a number of small trading units.
A subsequent approach was made to Redwood Bank to refinance the major refurbishment and conversion of a former restaurant to retail premises with nine flats above and a side extension.
The main issue with the request was the move from retail into investment, where there had been some push back around Mr Mohindra’s lack of experience in the investment sector.
John Hall of Redwood Bank visited the area to satisfy the demand for the project. He said: “My visit confirmed there were no existing vacant units and there was a good demand for what was being offered by the two premises. There was a steady flow of customers and the impressive structure of the Daminis shop, made mainly from glass, has great kerb appeal.
“Having seen the quality of the property and the demand in the local area we were happy to approve the loan. In addition, I was fully satisfied in Mr Mohindra’s capability to move the business forward.”
An initial £2.6 million was agreed which refinanced the first project. Soon after, a further £3.2 million was agreed to refinance another, near complete, refurbishment and extension project.
The first loan was formally agreed on the July 3, 2019, just four working days after the original application. By the July 31, the second loan was also agreed, just two days after it was submitted. Combined, the loans represent the biggest deal the bank has drawn to date
John Hall, Business Development Manager.
The visit to London to meet the customer and carry out a site visit helped facilitate both deals. The release of funds for both loans enabled the acceleration of work on the projects. Redwood’s flexibility and common sense approach made this case most notable.
Mr Hall added: “It is always a pleasure dealing with Manish and Sanjay from Sterling Professional Finance Ltd. They can always be relied upon to provide full details and a picture of what we are being asked to provide and why it doesn’t fit normal High Street criteria.
“It’s good to know there are never any surprises when it comes to meeting the customer, due to the thoroughness of their work.
“It was also a pleasure to work with Mr Mohindra, whose openness and honesty provided added comfort to the deal.”
Sanjay Rughani commented: “Deepak Mohindra has been a client of Sterling Professional Finance for about five years. Whilst there were complexities in the funding, which was required by Damini’s, we needed a lender that could understand them, and be able to progress matters.
“Following a meeting with Deepak by John Hall and Graham Reynolds at the site, it was evident they understood the proposition. This provided Manish, Deepak and I comfort that they could execute it in a timely manner, it also meant the covenants wouldn’t be onerous.
“John and Graham were also able to get the Redwood credit team to buy into the proposition. It’s the relationship we have built with Redwood that has allowed us to work closely with them."
Deepak Mohindra, further endorsed the experience, he said: "Redwood have been very efficient, cooperative, and very friendly with the service provided. I would recommend them highly to anyone. Excellent is the only word I can use.”