/ Author: SPF

This client, who had lived around the world, had decided to relocate to Guernsey and wished to invest in local commercial property to compliment an existing portfolio. Given their desire to relocate they were also keen to identify an offshore bank with whom they could commence a long term banking relationship and the client made contact with Gary O’Neill to assist them with their various requirements.

The target property provided challenges in that some of the units were currently vacant whilst the remaining units had leases with break clauses and/or short term expiries. Furthermore, a significant portion of the client’s liquidity was tied up, given they had made other recent capital purchases ahead of some significant liquidity events anticipated over the next 2 years, meaning they were needing full funding for the initial purchase.

By utilising another asset within the portfolio, whilst also understanding the potential of the target property as well as the client’s anticipated future income streams, SPF was able to structure a debt package which provided full funding for the purchase of the commercial asset on a 3 year, interest only basis.

The funding was provided by an offshore private bank which was also able to understand the client’s overall wealth profile and provide mortgage funding to support the purchase of a new Guernsey home.

A great client outcome in terms of both the debt solution and the introduction to a long term banking partner. Furthermore, the client themselves is multi skilled and entrepreneurial so a fantastic “acquisition” for Guernsey.