A UK based charity supporting different communities at home and across the globe wanted to acquire a retail site in the Midlands to generate funds to help fund its good works.
Although the ultimate purpose of the loan was somewhat unusual, and the borrower wanted to complete within six weeks, Recognise Bank approached the application in the same supportive yet diligent way it would any commercial deal.
We agreed a five-year commercial mortgage of £1.65million, with an LTV of 55%, for the freehold of the site which was being used as a supermarket. The rental profits will be used to fund the charity’s education and healthcare programmes, which have been designed to reduce hardship, improve wellbeing, and enhance life opportunities for underprivileged groups.
The charity’s aims chime perfectly with our own environmental, social and governance (ESG) values
James Meigh, Recognise Bank
James Meigh, Recognise Bank’s Director, Business Development, explained the Bank’s approach to the deal: “This was satisfying on a number of levels. Firstly, due to our experience and flexibility, we were able to put together a package to meet the client’s lending needs in a short period of time.
“Secondly, the charity’s aims chime perfectly with our own environmental, social and governance (ESG) values. The charity gives back to disadvantaged communities, and the freehold profits from the site will be used to improve access to education for impoverished and underprivileged children and adults.
“Recognise Bank believes that by taking a responsible and sustainable approach to the business sectors, the environment and the communities we operate in, we can make a positive difference to the world around us.”
