Distressed Property
Investment Description:
Industry: It´s an ill wind that blows no-one any good! The financial chaos caused by the Covid19 pandemic has offered distressed property specialists limitless opportunities to acquire excellent UK properties at well below market value from vendors who are stressed or distressed. Our client is a property group with over 30 years experience in the distressed UK property market. Their model is simple:
· Acquire property at well below market value
· Refurbish, renovate or refresh
· Rent the property on a long term lease
· Sell to a professional landlord or;
· Refinance with the banks to exit the investor
Proposition: Investors lend the property developer money to bridge the period between acquisition and sale/refinancing. This bridging finance is profitable for the investor and cheaper than a bridging loan from the bank so a true “win-win” arrangement.