Recognise Bank has completed a £1.07m bridging loan to support the refinance of two care homes in Bristol and Wales.
The owners of the two care homes required a short-term facility to repay existing borrowings while raising a small amount of additional equity to support ongoing upgrades to the assets.
The finance facility, introduced by Paul Mak at Pomegranate Commercial Finance, was structured over a 24-month term at 60% LTV.
Recognise Bank worked closely with the broker to understand the position of the homes, including the latest CQC reports and the borrowers’ plans to continue making improvements. A practical view was taken on the strength of the underlying business operations and the borrowers’ commitment to investing in the properties.
The deal was led by Lending Manager Heather Mitchell, supported by the wider lending and operations team.
Recognise Bank continues to build on its strong growth, expanding its lending proposition and operational capability to support more brokers, property professionals and SMEs across the UK.
Heather Mitchell, Lending Manager at Recognise Bank, said:
“Care home assets require careful assessment, especially when it comes to understanding both the current position of the trading performance and the owners’ plans for improvement.
We worked closely with Paul to structure a facility that allowed the existing debt to be refinanced while giving the borrowers the capital and time needed to continue investing in the homes. The clear improvement plan allowed us to take a pragmatic view and support experienced SME clients in a specialist sector.”
Paul Mak, Managing Director at Pomegranate Commercial Finance, added:
“This was a specialist transaction where Recognise Bank took the time to understand the merits of the case from the outset and worked collaboratively to deliver a facility that meets the owners’ requirements now and gave them the breathing space to support their future plans.”
To learn more about Recognise Bank’s bridging finance, visit: https://recognisebank.co.uk/business-bridging-loan/
