FRP Real Estate Advisory has completed a £21m commercial acquisition facility with Shawbrook.
The transaction enabled the purchase of a high-quality office building in Cardiff with strong ESG credentials, supporting an experienced asset manager’s growth strategy.
The case was led by Corey Dennis, Senior Broker at FRP Real Estate Advisory. Corey managed the process from end-to-end, coordinating between the lender and third-party professionals to ensure a successful completion.
The transaction was completed during a period of heightened market volatility, with interest rate movements shifting significantly following geopolitical tensions. To preserve the acquisition, the team restructured the facility into a five-year term with a two-year fixed rate. This strategic pivot was essential to protect the client's cash flow and provide certainty in a volatile interest rate environment.
Maximizing leverage for the borrower was a primary objective throughout the negotiation. FRP Real Estate Advisory worked closely with Newmark, allowing the team to secure an LTV/LTGDV based on the lower of 75% of VP value or 65% against the market value.
“Sudden market changes from global conflicts created additional complexities. However, with close coordination between all parties, we managed the evolving lending conditions, pricing adjustments, and transaction timelines,” said Corey Dennis, Senior Broker at FRP Real Estate Advisory. “By pivoting to a fixed rate, we preserved the client's cash flow in a volatile market. I am delighted we were able to successfully deliver this strategic acquisition for the client within the required timeline during these conditions.”
Russell Gaynor, Structured Real Estate Senior Analyst at Shawbrook, said:
“We are delighted to have supported a new-to-bank client with a £21 million acquisition facility for this high-quality, modern office in central Cardiff with a BREEAM Excellent rating. Backed by an experienced sponsor, the facility was structured not only to fund the acquisition but also to provide the client with a 2-year fixed rate to support cash flow planning, supporting the client’s wider growth ambitions. Welcoming a new client to Shawbrook on a transaction of this calibre, delivered alongside FRP, Newmark, and Brecher, reflects exactly the type of business we are looking to support through our Structured Real Estate proposition.”
The transaction involved a joint effort between the Shawbrook team and legal counsel from Brecher LLP, represented by Kate George, Michelle Brown, Kelly Fowler, and Emma Perry. James Coll of Newmark UK provided the valuation services that underpinned the facility's structure.
