Our client, an experienced property developer, wanted to refinance the conversion of an office building into flats. At the point at which we arranged the refinancing the flats were still vacant.

The development was a conversion of the Kennet Place building, situated in the centre of Reading, into 65 one-bedroom and 28 two-bedroom apartments, totalling 145,980 sq ft.

Karis Capital managed to secure a £20.4 million refinancing facility that included a stabilisation period that gave our client time to secure tenants and establish rental income.

The loan facility was at an LTV of 75% of the blocks value, at a rate of 5.6% per annum fixed for five years. The arrangement fee was 1.5% all-in, with amortisation of 1% per annum.