Commercial property funding for business expansion

Earlier this year Pegasus Funding Solutions was approached by BSW Systems to assist it with funding the expansion of its business.

BSW Systems (BSWS) is a wholesale manufacturer of aluminium and uPVC windows, doors and conservatories for the trade only. Based in a 30,000-square foot manufacturing facility near Peterborough, BSWS serves the East Midlands, East Anglia and northern Home Counties.

The company uses its technical expertise to help its clients to market the most appropriate door and window solutions to their customers.

BSWS works with some of the best brands in the window industry, including Liniar Profiles, Smart Systems, Pilkington and Yale, to deliver a range of high quality doors and windows for commercial customers.

The production facility incorporates some of the latest CNC equipment available on aluminium and uPVC production lines to ensure precision and accuracy of manufacture. Currently BSWS’s manufacturing capacity is 750 uPVC products and 250 aluminium products per week on a single shift.

BSWS needed full ownership of the property to be able to expand its business. The sale was agreed but finance was needed to fund the £165,000 needed to fund the balance of the transaction. Rob was using his Self-Invested Pension Plan (SIPP) to purchase the remaining 61 per cent and was making a substantial contribution into the fund himself.

BSWS needed assistance to source the right finance deal with the appropriate repayment terms to ensure that cashflow and production was unaffected.

Owner and managing director of BSWS Rob Morley part-owned the facilities in which the business is based in partnership with the original owner of the building.

Rob was looking to take full ownership of the premises and acquire the balance of the site, amounting to 61 per cent of the value of the property, to develop and expand the business.

“It has always been my intention to buy the balance of the site and I agreed a deal with the building developer to purchase it,” said Rob.

“By doing this we would be able to invest in further plant and machinery to enable us to manufacture both uPVC and aluminium products side-by-side in a single shift and increase our productivity - and therefore the value to our customers.”

Pegasus Funding worked with Rob Morley and his independent financial advisor, Andy Brooks of Brook Wealth Management and SIPP trustee James Hay Partnership.

Pegasus went out to various providers we a remit to find a provider that could offer up to a ten-year term, but with the ability to pay the loan off earlier without any redemption charges.

Barclays was chosen as the preferred funding provider because it offered the best terms.

Pegasus then worked with Barclays and its appointed surveyors Pygott and Crone, liaising between them and the trustees of the pension fund to ensure that the funding proceeded smoothly.

Pegasus liaised closely on a regular basis with trustees, the client, the bank and the surveyors to ensure the deal went through to completion.

Rob Morley said: “Pegasus Funding Solutions worked with us to understand our commercial property funding requirements and provided terms quickly. They were very professional in the way they sourced the best deal for us and were able to liaise with lenders, pension fund trustees, surveyors and lawyer to ensure the process went as smoothly as possible.

“We were happy with the outcome and would recommend Pegasus Funding Solutions to anyone requiring funding for purchasing commercial property or expanding their businesses as owner-occupiers.”

Pegasus oversaw the complete process of financing the purchase, negotiating appropriate repayment terms to ensure a smooth transaction process and the continued operation of the business throughout the process.

Due to the bespoke nature of commercial mortgage transactions, Pegasus was able to assist in sourcing the best funding providers and negotiate the best rate with lenders.

Pegasus mediated throughout the process to enable the client to get on with the business of running their business without the hassle of dealing with lawyers, surveyors, lenders and financial advisors directly.

For further information please contact Richard Olsen on 0203 3270567 or Email: [email protected]

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