I have been asked by an Accountant if the following scenario can happen. Would appreciate some input.
Fund A currently owns a commercial property with a small loan (LRBA). Fund B wishes to buy part of the property but would have to borrow to do so.
Question – can Fund B purchase part of the property? I’m assuming the loan in Fund A would have to be paid out if this went ahead. Can two funds own jointly/tenants in common if one fund borrows for their part of the property.