HCR’s Thames Valley real estate finance team acted for Proplend in their first VAT bridging loan, a growth area for the leading technology platform for investor funded commercial real estate loans.
The platform specialises in this type of finance, setting it apart from many other lenders; the loan, which is taken out in relation to commercial property which attracts VAT, means that investors can manage the VAT charge of 20% of the purchase price without affecting their cashflow.
Proplend offers the loan and also works to recover the VAT paid from HMRC to redeem the loan post completion.
Clare Day, head of finance and financial services at HCR, said: “There was a tight turnaround time and some complications on the borrower’s side but Tarnjeet really kept the pressure on to ensure the timescales could be met. I am very proud of how swiftly the team moved to make this happen for our client.
“This was a sizeable loan – £1.8m – and should be just the start of an important new product roll out for Proplend.”
Brian Bartaby, CEO of Proplend, said: “We had only just started working with HCR when we launched our new VAT loan product. Whilst we already had ongoing loan transactions in the pipeline, Tarnjeet picked up the ball of what was not the easiest of deals (including the borrower switching senior debt lenders at the eleventh hour), and successfully managed the transaction through to completion. We have been extremely impressed by the professionalism and level of client service received from HCR.”