When a manufacturing client was faced with complex business challenges during the pandemic our position as the only UK real estate adviser to be part of a banking group meant we could offer a unique financing solution to get them back on track.
The pandemic has affected many businesses and the search for financing in many of the most impacted sectors has often been challenging. A manufacturing company was struggling to obtain new financing from traditional sources and our experienced occupier strategy team was introduced to explore new avenues. We assessed their wider business position and reviewed and segmented their portfolio into critical and non-business critical assets to build a range of different financing scenarios, analysing each option’s impact on their balance sheet. This allowed our client to understand future impact and associated risks and agree a financing structure their parent company would find attractive.
Working collaboratively with our bank and capital markets colleagues, we found a highly desirable long leasehold site - ideal for a sale & leaseback though with a significant mortgage facility which prevented its sale. In collaboration with BNP’s CIB, we not only successfully re-mortgaged the facility, but were then able to approach the freeholder to ensure confidence in our client’s covenant and sell the building at a significant premium. This unique service offering from the BNP Paribas group ensured a financially fluent funding solution that helped our client to not only weather difficult market conditions and retain their manufacturing base but to successfully release much needed capital to fund future growth and start expanding their business at a new location.