Fast turnaround secures new premises for growing logistics firm

When a fast-growing logistics firm needed to move quickly to secure new premises, ASC delivered. With a tight deadline and complex circumstances, our swift action made all the difference.

Client: Transport and logistics company
Facility: £400,000 loan
Purpose: To purchase a freehold property

Background

Over the course of six years, our client had built a successful logistics business, now operating a fleet of eight HGVs with an operating licence for 15 vehicles and experiencing year-on-year growth.

They came to us seeking finance to purchase a freehold property located directly across the road from the yard where they rent. The purchase price was £715,000, and they required a loan of £400,000 to add to their £315,000 deposit.

The site would allow them to be nearer to their vehicles and reduce the rent they pay on two separate warehouses and an office. They planned to acquire the property in a holding company and rent it back to their trading business, Elevation Logistics Ltd.

Challenges

The property was advertised with vacant possession. However, during the purchase, it emerged that one of the units was occupied by a protected tenant. The bank wouldn’t lend until the lease issues were resolved, and the transaction subsequently collapsed.

Solution

We found an alternative lender and provided enough supporting information to demonstrate that a valuation was unnecessary. We finalised the deal in under a month after the original lender withdrew.

Outcome

Our client has successfully completed the purchase of their new premises, saving £14,400 per year on the rent for the office and warehouses.
Eleven months later, after the tenant had signed a new lease, we refinanced with the original lender on a longer-term arrangement with significantly lower monthly repayments.