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However, quick thinking from a Redwood Bank customer meant the complicated deal went ahead, all within the deadline.
THE SITUATION
Resolv Property Ltd, a property development company based in Solihull, has three directors, who all have equal shares in the business.
An opportunity to acquire a portfolio of properties was sourced through Ross Harper of National Property Auctions. The portfolio of 91 properties included a series of flats and mid-terraced houses located across 16 towns in Scotland, and a semi-commercial property which was added at a later date.
Time was of the essence because the vendor was retiring and wanted a quick sale. His demands were clear: he wanted to sell the whole portfolio together, instead of selling them individually via auction.
Jeremy Robinson, Asset Finance Advisor from Arc & Co, made initial contact with the Resolv Property team in June to discuss the deal, and they realised they would have to move fast to meet the vendor’s terms.
Nicola Blake, Associate Business Development Manager
THE SOLUTION
One of the first steps was getting the properties valued, which was a challenge because there were so many that needed to be seen within a very short period of time.
In addition, all valuations had to be carried out while adhering to social-distancing rules, adding another layer of complexity to the whole process.
The trio of directors knew they would need a loan, but with the clock ticking, they knew they needed to approach a lender renowned for its speed, professionalism, and flexibility.
They also recognised they needed a lender that would take into the account the below market purchase price and lend against the market value.
Adam Lawrence, one of the three directors, is an existing customer of Redwood Bank and knew from first-hand experience that if any organisation could help, it would be the Hertfordshire and Warrington-based Challenger Bank.
Redwood Bank has earned itself a reputation for approving complex deals for large property portfolios, and so an approach to it was made.
It was quickly determined that Resolv Property would require a multi-million-pound loan in order to complete the property purchase.
An application was submitted, and in keeping with the tight timescales credit approval was promptly granted for the properties, however the customer then wanted to add the semi-commercial property, which added more complexity. So, a change to the agreed terms was needed and final approval was given just five days later.
THE EXPERIENCE
Having previously worked with Redwood Bank, Adam felt reassured that the Bank had the experience and skills to needed to complete the deal.
He said:
"Redwood Bank was very clear from the start about the terms, what would be required, and really listened to what we needed in this situation. There was also an element of flexibility regarding the obtaining of some missing documents, which are typical in any portfolio purchase."
“Their communication was spectacular and speaking to decision makers makes things so much easier when trying to complete any property or business purchase. I wouldn't hesitate to do business with them again, and indeed have got other cases placed with them right now and will keep that relationship going and growing as our business continues to grow.”
Nicola Blake, Redwood Bank’s Associate Business Development Manager who led on this deal, said: “There’s no doubt about it, this was a complex deal, but we provided the broker and customer with regular communications and updates.
“We held daily updates with the customer, as they wanted to complete by early December 2020. Although this was an ambitious date, we all worked collaboratively, and due to excellent teamwork across all areas; customers, underwriting, credit operations and both legal teams we completed on time.”
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