Bridging Finance Structured to Support a Portfolio Share Purchase

The situation

An experienced portfolio landlord approached Expert Finance with an opportunity to acquire a residential portfolio via a share purchase.

The transaction involved the acquisition of a special purpose vehicle holding 7 residential units, all let on standard ASTs and generating a combined rental income of approximately £42,060 per annum.

The agreed purchase price for the shares was £400,000. The portfolio carried an existing debt facility of £300,000, which was cleared as part of the transaction.

The underlying portfolio value was positioned at approximately £500,000, subject to formal lender valuation.

The client required a funding structure that could support the share purchase, clear the existing debt, and allow the portfolio to be repositioned onto longer-term finance.

The approach

The starting point was understanding both the transaction structure and the underlying assets.

While the acquisition was completed via a share purchase, the strength of the case sat within the portfolio itself. The properties were fully let, income producing and held within a clean SPV structure.

The funding was structured to reflect:
• the underlying asset value rather than just the share price
• the stability of the rental income
• the clearance of the existing £300,000 facility within the transaction
• the client’s longer-term intention to refinance onto a portfolio facility

By presenting the case around income, asset quality and exit, the transaction was positioned in a way lenders could engage with, despite the additional layer of a share purchase.

The outcome

Funding was structured to support the acquisition alongside the clearance of the existing facility.

This enabled the client to complete the purchase and take control of the portfolio, with a clear route to refinance onto longer-term lending once the acquisition had been completed.

The structure allowed the transaction to move forward in a controlled way, aligned to both the immediate requirement and the longer-term strategy.