• Loan Type: Senior Secured Loan
• Purpose: To refinance an 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 sq ft of residential, hotel, retail, and office space. The asset includes 7,000 sq ft of C3 residential space with 8 penthouses, 99 hotel rooms, 59 serviced apartments, 7,000 sq ft of community-serving retail space on the ground floor, and 30,000 sq ft of office space, with significant portions let to multiple tenants.

The Challenge:
Initially valued at €42m 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 refinancing solution, lowering the debt burden, providing immediate liquidity to the project’s existing lender, and enabling asset stabilisation. The asset was underwritten using expertise across Maslow’s organisation, alongside third-party due diligence providers and asset managers, with a comprehensive business plan developed to optimise the asset’s performance.

The business plan included:

• Optimising the hotel sales strategy by pivoting from a hotel management model to a franchise agreement.
• Securing lease agreements for unlet retail space.
• Enhancing the appeal of the residential units through targeted marketing and capital expenditure improvements.

By providing tailored financial solutions and expert asset management, Maslow Capital enabled the asset to navigate financial distress, ensuring its long-term stability and growth.