Together and Capital B Property Finance have arranged a £3.8m unregulated bridging loan for an experienced investor to acquire a 40-property rental portfolio at auction in the West Midlands.
The properties, comprising predominantly three to five-bedroom terraced and semi-detached housing along with flats and HMOs, were sold following the dissolution of a larger REIT portfolio. The majority of units were tenanted at the time of purchase.
The borrower, who has over 25 years of property experience, operates a £25m portfolio of 110 properties generating more than £2m in annual rental income. A newly incorporated special purpose vehicle was established to acquire the portfolio.
Transaction timeline and structure
Together delivered the bridging loan within 12 working days of submission to meet the auction deadline. The facility was structured at 75% gross loan-to-value based on purchase price, over a nine-month term with retained interest.
Andy Neo, key account manager at Together, said: “This case also demonstrates that experienced portfolio landlords continue to invest significant sums in the private rental sector despite the introduction of the Renters’ Rights Act. They still see a strong opportunity in rental property and are willing to commit capital to acquire new stock.”
The transaction comes as rental growth slows ahead of the Renters’ Rights Act, with some market observers questioning the appetite for large-scale portfolio acquisitions in the current regulatory environment.
Operational challenges
The auction purchase presented practical difficulties. Due to the number of individual lots, the buyer had limited access to detailed condition reports and full letting information across the portfolio. Three properties lacked valid Energy Performance Certificates at completion.
Together proceeded based on the investor’s track record in acquiring and managing large-scale residential portfolios. The transaction was processed through the lender’s Premier for Intermediaries service.
Neal Telford, director of bridging and development at Capital B, said: “Given the number of properties involved, it was essential that the case progressed quickly and with certainty.”
Refinancing strategy
The nine-month bridging term allows the client to complete light refurbishment works and let vacant units before refinancing onto long-term buy-to-let mortgages. The structure reflects broader challenges facing portfolio landlords, with letting agents urging landlords to review operational efficiency amid tightening margins.
The West Midlands acquisition represents one of the larger portfolio transactions completed through bridging finance in recent months, indicating continued institutional interest in the private rental sector despite regulatory changes.