Purchase of an ‘Aparthotel’ in Manchester with Offshore Ownership Structured Loan
Our client, an affluent Kuwaiti national with a diversified international investment portfolio, sought to acquire a prestigious city centre ‘aparthotel’ in Manchester. This acquisition was to be facilitated through a British Virgin Islands (BVI) trust.
The ‘aparthotel’, strategically located in Manchester’s city centre, boasted a collection of upscale serviced apartments. Its prime position, contemporary amenities, and potential for consistent rental income contributed to its desirability as an investment opportunity.
With a purchase price of £2,240,000, the client’s aim was to procure a loan amounting to £1,250,000. This purchasing initiative was driven by the desire to expand and diversify their current portfolio.
A challenge faced was that the involvement of a BVI trust introduced intricate regulatory and legal complexities that required thorough expertise in offshore ownership structures. Proving the financial feasibility of the investment also presented challenges, as the property was newly constructed and intended for short-term rentals.
To combat these challenges, we collaborated closely with an offshore lender well-versed in international real estate transactions, especially those involving complex ownership structures. Our team also worked in tandem with the lender to design a loan structure that accounted for the intricacies of the BVI trust ownership and the property’s market value. To address regulatory and legal challenges, we engaged a legal and tax expert to ensure compliance while navigating the nuanced landscape of cross-border real estate transactions.
By leveraging our expertise, the client successfully secured the loan required and completed on the purchase of centre ‘aparthotel’ in Manchester. This achievement was a result of strategic collaboration, meticulous structuring, and adherence to legal and regulatory compliance.
This case exemplifies the significance of specialised knowledge in orchestrating intricate international real estate transactions. Through a strategic blend of tailored lending, regulatory acumen, and comprehensive due diligence, the client not only secured the property but also enhanced their investment portfolio. This case underscores the seamless interplay between global investment, financial strategy, and legal finesse within the realm of real estate finance.