Client: Transport and logistics company
Facility: £400,000 loan
Purpose: To purchase a freehold property
Background: Supporting a growing logistics company
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.
The business approached ASC seeking a commercial mortgage for logistics expansion, enabling them to purchase premises close to their existing yard. 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: Securing a commercial mortgage under pressure
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: Fast turnaround on logistics finance
We sourced a lender experienced in commercial mortgages for logistics companies, ensuring the deal completed in under a month. Learn more about how ASC helps businesses secure commercial mortgages quickly and efficiently.
Outcome: Successful purchase and long-term savings
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.
