Providing Finance for a Mixed Commercial Portfolio Across the UK
A European property investment group approached us seeking funding for a refinance and equity release against a portfolio of prime UK commercial assets. The portfolio comprises three well-located properties: a logistics unit and a modern office in Scotland and a hotel in Newcastle. All assets are fully let to strong covenant tenants on long leases, providing secure and predictable income streams. With a combined annual rent exceeding £1 million, the client required a facility that would support their long-term investment strategy while maintaining flexibility.
Contact AlignHow We Helped: Structuring a Sharia-Compliant Solution
We worked closely with the client and a Sharia-compliant lender to structure a Murabaha finance facility tailored to their requirements. The facility was agreed at £3.35 million, representing a conservative sub-30% Loan to Value ratio, on a profit-only basis with no early repayment charges. The pricing was highly competitive, with a margin in the 2%s, reflecting the strength of the security and the borrower’s profile.
This approach ensured the client achieved their objectives while adhering to Sharia principles.
Outcome
The transaction provided the client with a flexible, cost-effective solution that unlocked equity without compromising their long-term strategy. The refinance strengthened their UK footprint and positions them for future acquisitions, with significant additional lending opportunities expected as the relationship develops. The lender’s Sharia-compliant structure aligned perfectly with the client’s background, and the deal marks the beginning of a strong partnership built on trust and shared values.