West One Loans has completed a £1.6m deal on a pub in Knightsbridge.
The borrower paid £4m for the 3,500 square foot pub, located on Montpellier Street, opposite Harrods. The site’s buyer, a property investor based in the British Virgin Islands, took out a nine-month loan at 1% per month to help fund the purchase.
Duncan Kreeger, chairman of West One Loans, said: “By lending to an off-shore entity based in the British Virgin Islands, we have shown West One Loans is capable of handling a broad spectrum of cases including the most complicated international deals. But this case also shows we are continuing to lend against commercial property on a consistent basis.
“A lot of short term lenders have no option but to focus on residential deals. They know commercial property is harder to refinance and the deals are harder to underwrite. The West One Bridging Index shows just 16% of all loans by volume are now against commercial property, compared to 30% back in 2009. I’m pleased to say we are bucking that trend.”
“The deal went through without a hitch,” explained Daniel Fireman, managing partner of CKFT solicitors, which advised West One Loans.
“Despite the complexity of the case, West One made sure this was a relatively painless process and all the professionals involved combined to deliver the security and funding to the satisfaction of both lender and borrower. West One have shown they are willing and able to do difficult deals.
“This is a prime example of a good but complicated loan that less committed lenders may have been unable to perform due to the complexities of the deal and the tight timescale. Both West One and the borrower were accommodating and pro active and this ensured the loan was completed ahead of deadline.”