£12.2m Below Market Value Bridging for a Midlands Residential Portfolio

A portfolio landlord agreed to buy an entire UK residential portfolio across the Midlands for £12.2m, acquiring every property another landlord owned in a single block purchase. FD Commercial arranged below market value bridging at 90%, since the block price sat well under the combined value of the properties bought individually.

The situation

The vendor was exiting the UK residential market entirely and wanted a single buyer for the whole stock rather than selling each property one at a time. That preference for certainty and speed over maximum price is what created the discount: valued separately, the properties in the portfolio came to 25% more than the £12.2m block price agreed.

The structure

Because the discount was backed by individual RICS valuations on each property in the portfolio, not just a single blended figure, the lender had clear evidence of the true combined value behind the block price. That let us structure the bridge at 90% of the purchase price rather than the lower percentage a standard portfolio acquisition would typically secure.

Why it matters

Bulk-exit portfolio sales like this one are one of the clearest sources of a genuine, evidenced below market value discount: a vendor selling everything at once has a real reason to accept less than the sum of the parts, and that reason is exactly what a lender needs to see before pricing against the discount rather than the purchase price alone. See our full guide to below market value bridging finance for how the 90% and 75% limits apply to deals of this size.

See how the same 90% and 75% limits applied on a smaller, single-asset deal in our case study on a London MUFB, and on commercial property in our case study on a Bristol warehouse.