Asset Advantage funds £113k AV upgrade for property developer

Asset Advantage has provided £113,000 in funding for audio visual equipment to support a major property development project in Cardiff, working alongside broker partner Business Finance Trust.

The deal will see a range of AV equipment, including speakers, amplifiers, control systems, televisions and mixers, installed across a flagship site owned by an award-winning Welsh property developer known for transforming historic buildings into modern, multi-use spaces.

The developer has built a reputation for acquiring and redeveloping large, often listed, former industrial and commercial properties, repurposing them for leisure, residential and office use while retaining ownership to generate long-term rental income.

According to Business Finance Trust directors John Davies and Kevin Beevers, the client’s business model required a lender willing to look beyond traditional financial metrics. Because the developer retains assets rather than selling them, much of the value created is not immediately reflected on the balance sheet.

Davies said the proposal relied heavily on demonstrating the client’s track record and the underlying strength of the business, rather than purely historic financials.

“In presenting the proposal I had to show the developer’s previous successes. Because they have been developing and keeping the buildings, rather than developing and selling them, nothing shows on the balance sheet until it’s crystalized.”

Asset Advantage ultimately structured the funding as a £113,000 CapEx term loan over three years, replacing an initial finance lease proposal. The revised structure provided greater flexibility, allowing payments to be made in three tranches to align with supplier requirements, while also incorporating VAT into the facility to support cashflow.

Philip Knight, credit and risk director at Asset Advantage, said the strength of the proposal and the client’s experience made the transaction straightforward.

“A comprehensive and well put together proposal made the decision-making process a straightforward one. Plenty of evidence of an established business and experienced management. The underlying business case was a vanilla asset finance transaction for a discrete stand-alone property development project so whilst there was some ‘noise’ around the financials the core credit covenant is strong.”

William Thompson, trainee broker manager at Asset Advantage, worked closely with the broker to refine the structure, ensuring the facility met both the operational and financial needs of the client.

Davies praised the lender’s flexibility and collaborative approach, describing the transaction as complex but well-supported at every stage.

“In 40 years of working for banks, and subsequently setting up my own brokerage, I have never met such flexibility or willingness to listen. It was a complex deal, and at every juncture you found a solution. This is exceptional service. This deal fell between a property deal and an asset finance deal, and you guys listened which was just perfect.”

The funding will support the final stages of the Cardiff development, enhancing the site’s offering and helping to deliver the developer’s wider vision of creating collaborative, community-focused spaces within revitalised urban buildings.