Lending Solutions | Non-Performing Loan Purchase,
Build Type self build
Lending Solutions | Non-Performing Loan Purchase,
  • Loan Type: Non- Performing Loan Purchase
  • Purpose: To refinance incumbent development lender for a distressed mixed-use real estate asset
  • Special Feature: Flexible capital structure with a strategic focus on stabilising and optimising the asset’s performance

Background: The project involves an income-producing, recently built mixed-use freehold asset in London, comprising approximately 130,000 sqft of residential, hotel, retail, and office space. The asset includes 7,000 sqft of C3 residential space with 8 penthouses, 99 hotel rooms, 59 serviced apartments, 7,000 sqft of community-servicing retail space on the ground floor, and 30,000 sqft of office space with significant portions let by multiple tenants.

The Challenge: Initially valued at £35m, the asset faced considerable financial stress due to macroeconomic concerns and underperformance. The primary lender required the borrower to exit their position by year-end to manage their balance sheet, creating an urgent need for liquidity.

Maslow Capital’s Solution: Maslow Capital structured a loan purchase with an entry price of £27m, providing immediate liquidity to existing lender and enabling asset stabilisation. The asset was underwritten using expertise across Maslow’s organisation and third party DD providers and asset managers with a comprehensive business plan developer to optimise the assets performance. M

Strategic Planning: The business plan included:

  • Optimising hotel sales strategy and pivoting from Hotel Management to Franchise agreement
  • Securing lease agreements for unlet retail space
  • Enhancing residential units’ appeal through marketing and capital expenditure improvements

By providing tailored financial solutions and expert asset management, Maslow Capital provided the opportunity for the assetto navigate financial distress, ensuring it’s long-term stability and growth.

Adam Baghdadi

Head of Lending Solutions

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