A commercial property acquisition in the West of Scotland was successfully financed through bridging finance, enabling a quick transaction with the potential for significant profit following planning approval.

Information on the Target

The target of this deal is a commercial property acquisition, specifically a listed building located in the West of Scotland which currently does not have planning permission. The transaction exemplifies the versatility of commercial bridging finance, which provides borrowers with the necessary capital to purchase or refinance commercial assets efficiently. In this case, the entire purchase price was secured through rapid financing, allowing the buyer to capitalize on the opportunity without delay.

The deal was secured using an unencumbered derelict hotel as collateral, which enabled the borrower to finance 100% of the purchase. This specific approach highlights the critical importance of speed in commercial property transactions, as the funding was delivered in under six weeks, setting the stage for a potentially significant profit of around £2 million once the needed planning permission is acquired.

Industry Overview in the UK

The bridging finance sector in the UK has experienced substantial growth, valued at approximately £4 billion in 2018. This surge can be attributed to increasing demand for flexible and quick financing solutions by borrowers acros