Case Studies

Sharia Compliant Commercial Mortgage • £12,000,000 • South East London

In this case, a Middle Eastern client of ours was seeking a premium commercial investment opportunity with a focus on retail, despite the prevailing market challenges. Understanding the difficulties of securing a commercial mortgage on a purely retail investment, especially within the limited Sharia-compliant market, we identified and pitched an exceptional mixed-use investment opportunity. This asset includes a 59-bed hotel, multiple residential units, commercial office space and a 256-space car park.

Despite initial hesitations from most Sharia-compliant lenders, our expertise enabled us to craft a bespoke financial solution. Our strategy leveraged the asset’s diverse components, making it more attractive to lenders and ensuring a robust financing structure. The investment’s strong Net Initial Yield (NIY) of 11% was a significant factor in providing us with income manoeuvrability to secure favourable financing terms.

As a result, we employed various financial instruments, including a healthy amortization schedule and an interest cover account, to secure the deal successfully. This approach not only met our client’s investment criteria but also provided a sustainable and profitable financing solution.

Furthermore, our client was not after a purely dry investment opportunity, but one with significant upside potential. Since acquisition we have had a successful a pre-app with the council to provide an additional 198 residential units and 40,000 sqft office space on site, and we are actively pushing to secure full planning permission on that basis. This development is set to significantly increase the investment's value, offering the sponsor a substantial return.

We are not only proud of procuring and financing this investment but also of our role in asset managing this project. This achievement underscores our commitment to delivering exceptional investment procurement opportunities and bespoke financing solutions tailored to our clients' unique needs. It demonstrates our ability to navigate complex market conditions and deliver successful outcomes for our clients.

Commercial Mortgage • £9m Loan • UK Industrial Estate

In this case, our client was looking to release equity out of SIL (strategic industrial land) in the UK. Despite posing some initial challenges (short leases and sub-prime tenant profiles), we were able to negotiate an RCF (revolving credit facility) where our client can draw funds as and when needed (max £9m). Interest at 2.5% on drawn amounts with a 1.25% non-utilisation fee on undrawn amounts. This low-cost and flexible facility will provide our client with the necessary liquidity that will enable them to search for and purchase other strategic sites to expand their business

Buy to let mortgage • £11,750,000 • Ealing, West London

In this case, our client apporached us concerned by the rumours of rising interest rates towards the back end of Q2 2022. They had an existing facility on a floating charge across 12 apartments in the same block in West London.

We were able to refinance our client away from this facility and negotiate a 5 year fixed product with a new lender - something that has certainly come in handy considering where interest rates are now.

Buy to let mortgage • £16,450,000 • Clarges, Mayfair

In this case, our client had already exchanged on three apartments in British Land’s super prime Clarges development in Mayfair. Before approaching us, our client had heads of terms agreed with another lender who pulled out of the transaction 8 weeks before completion. With little time to look for alternative sources of funding, their 10% deposit (£2.35m) was on the line.

Thankfully all valuations had already been conducted and only needed to be readdressed. We were able to remedy the situation and bring another lender to the table before drawing down 6 weeks later.

Residential Mortgage • £1,659,000 • Buckinghamshire

In this case, our client was looking for a bespoke mortgage product for a new build home purchase. He had already approached the familiar high street banks but was left disheartened with the typical long-term amortization commitments.

After considering his circumstances, we were able to secure a bespoke mortgage product with a UK private bank that is interest only for the entire term of the loan. Furthermore, our client has now also been on-boarded as a private banking client without needing to deposit any AUMs on account. As well as sourcing a bank that has satisfied our client’s mortgage requirements, our client can also reap the multitude of benefits that a private bank can provide him with.

Development Finance • £9,500,000 • Knightsbridge, London

An Iraqi property developer approached us to secure development finance for a prime residential property in the heart of Knightsbridge. The developer had taken on a highly dilapidated property, with the intention of transforming it into a high-end residential asset. However, a key challenge we faced was proving to lenders that there would be a solid exit strategy at the end of the project, as the prime real estate market in London is often perceived as lacking liquidity.

To overcome this, we not only secured the development financing but also went beyond our traditional financing role by directing the client to a highly reputable super-prime real estate agent. This agent was instrumental in identifying and securing a potential purchaser for the finished product well in advance. This proactive approach put the client in a strong position to demonstrate a solid exit, which in turn unlocked the development financing from the lender.

The loan, structured at £9,500,000 with 68% LTGDV, allowed for a 24-month term that included an 18-month build period, including contingencies, and a 6-month sale period. When unexpected structural issues arose, we successfully negotiated an extension to the facility, ensuring the developer had the time and financial security to complete the project. The interest rate of 5.25% over BOE further demonstrated our ability to secure competitive terms for our clients.

This transaction highlights Navigate Finance’s ability to think outside the box, providing tailored solutions that go beyond financing. By facilitating connections with top-tier real estate professionals and offering strategic advice, we deliver a comprehensive service that ensures successful outcomes for our clients in even the most challenging market conditions.

Bridging Loan • €6,750,000 • Porto, Portugal

A Portuguese investor approached us with an urgent need to raise liquidity on a well-performing retail parade in Porto. The local market was unable to provide him with the quick funds required to meet his goals. Faced with an expiring permit to repurpose a significant portion of the retail parade, the client needed rapid financing to release equity and complete the redevelopment.

Understanding the time-sensitive nature of the situation, Navigate Finance stepped in and delivered a bridging loan of €6,750,000 within just 22 days from the first enquiry. This swift solution allowed the client to execute the redevelopment, which would enable further tenant uptake, increased occupancy, and a significant boost in income.

With these improvements, the client positioned the property for a more favourable, long-term refinancing solution. Our bespoke financing, set at 62% LTV with a highly competitive interest rate of 0.8% per calendar month, provided the liquidity necessary to stabilise the asset and ensure the investor’s redevelopment plans proceeded without delay.

This transaction highlights Navigate Finance’s ability to deliver fast, tailored solutions that address unique market challenges, ensuring our clients achieve their financial objectives even under tight deadlines.

Bridging Loan • £5,037,500 • Marylebone, London

Our client approached Navigate Finance in urgent need of financial restructuring. Due to rapidly rising interest rates and their floating facility with the current lender, they found themselves unable to meet their monthly interest and amortisation commitments on this prime Marylebone property. As a result, they were at serious risk of defaulting on the mortgage and falling into receivership.

In response, we swiftly arranged a bespoke bridging loan of £5,037,500, with a term of 18 months and the ability to extend for a further 6 months. This facility provided the client with immediate liquidity to repay their existing lender, thereby avoiding default and gaining crucial time to stabilise the asset.

During this period, the client was able to focus on improving the property’s performance and repositioning it for long-term refinancing. Our strategy gave the client breathing room to seek a more favourable, long-term financing solution once market conditions improved.

The 65% LTV and competitive interest rate of 0.65% per calendar month offered financial relief while protecting the asset’s value. This transaction showcases Navigate Finance’s ability to deliver rapid, tailored solutions to help clients navigate urgent financial challenges, ensuring the longevity of their assets.

Holiday Home Refinance • €8,825,000 • St Tropez, France

Our British client sought to refinance a holiday home in St Tropez, which he had owned for some time and had recently completed extensive renovations on. He was looking to release equity from the property while also benefiting from the advantages of a private banking relationship.

Leveraging our extensive network of private banking partners, Navigate Finance secured a bespoke 100% LTV facility for the client. Of this, 35% was placed into an investment account as Assets Under Management (AUM), generating a strong return on investment. This solution not only allowed the client to maximize the value of his property but also provided him with access to future liquidity.

Additionally, the client was granted the ability to borrow back up to 80% of the AUM account as a Lombard loan, priced attractively at 0.75% per annum. This flexibility gave him the opportunity to draw on the funds as needed, all while continuing to benefit from the growth of his investment portfolio.

Thanks to Navigate Finance's tailored approach, the client successfully released equity on his newly redeveloped holiday home and is now reaping the many benefits of a private banking relationship, including a highly competitive mortgage at 1.6% over EURIBOR. This deal exemplifies our ability to deliver complex financial solutions and enhance our clients’ financial wellbeing through innovative private banking strategies.

Multi-Let Industrial Estate Investment • £14,250,000 • Manchester, UK

Our Saudi client had already identified a multi-let industrial estate in Manchester as their debut UK investment, with a total purchase price of £22,000,000. Despite the strong market appeal of industrial assets, this particular property posed some challenges, including a relatively short WAULT (Weighted Average Unexpired Lease Term) and a few tenants with less robust covenants. These factors typically make securing competitive financing more difficult, especially in a market where lenders seek long-term stability.

Navigate Finance leveraged its expertise to craft a financing solution tailored to these challenges. We successfully negotiated a commercial mortgage with a loan size of £14,250,000, over a 5-year term, fixed at a competitive 6.25% interest rate. Despite fluctuating market conditions and rising interest rate concerns, we secured this fixed-rate financing, offering our client certainty and stability in their investment. This was key to protecting the investor’s returns and providing peace of mind over the loan term.

The gearing, set at 65% LTV, struck the right balance between maximizing leverage and maintaining lender confidence in the asset. Our ability to present the property’s broader strengths—such as its strategic location and long-term capital growth potential—helped secure favourable financing, despite the asset's complexities.

This transaction exemplifies Navigate Finance’s ability to navigate complex financing situations and deliver tailored, value-added solutions. It underscores our commitment to helping clients achieve their investment goals, regardless of the challenges presented by market conditions.

Sharia Compliant Residential Mortgage • £6,120,000 • Oxshott, Surrey

An Emirati client approached us with a desire to relocate to the UK after his daughter enrolled at Royal Holloway University in Egham. His intention was to move his family, including his younger children, to Surrey and enroll them in local schools. With an impressive career running one of the largest cold storage facilities in the Emirates, our client had a strong financial profile, but required a Sharia-compliant mortgage to align with his personal beliefs.

Leveraging our extensive relationships with Sharia-compliant lenders in the UK, Navigate Finance was able to structure the financing as a Murabaha facility, ensuring it aligned with Islamic finance principles. This not only met the client's requirements for Sharia compliance but also opened the door to a private banking relationship, granting access to exclusive benefits and wealth management services beyond the mortgage.

We worked closely with the private bank to ensure the process of moving funds and establishing the client’s financial presence in the UK was seamless. The £6,120,000 mortgage was structured with a competitive 1.9% interest rate over the Bank of England base rate, and with 65% FTV (funding to value), the client was well-positioned to settle into his new life in the UK.

This transaction exemplifies Navigate Finance’s ability to provide tailored financing solutions while offering added value by connecting clients with private banking services, ensuring their move and financial setup in the UK is as smooth as possible.

Buy to Let Mortgage • £2,300,000 • Bushey, Watford

An American-Kuwaiti client, with an impressive buy-to-let investment portfolio in the UK, approached us to restructure the financing on nine apartments, all located within the same block in Bushey. The client had been paying a high interest rate due to a floating charge facility, and with interest rates rapidly increasing at the time, the situation became unsustainable, particularly in meeting the bank's ICR (Interest Coverage Ratio) criteria.

After assessing the portfolio, Navigate Finance identified the opportunity to reposition the properties on a more stable, fixed-term facility. We successfully secured a five-year loan with a 65% LTV and a competitive interest rate of 4.7% fixed. Not only did this help ease the client’s concerns about interest rate fluctuations, but we were also able to release equity after repaying the existing lender.

This restructuring allowed the client to unlock more of his rental income after servicing the fixed financing costs, putting him in a stronger financial position and providing stability in a volatile market. This transaction demonstrates Navigate Finance’s ability to craft solutions that address both the immediate financial pressures and long-term investment goals of our clients, helping them grow, increase liquidity, and realise their potential.