Specialist bridge lender Hilco Real Estate Finance (HREF) has closed a £6.7 million loan to one of Newcastle upon Tyne’s leading family-owned property developers.
The loan, which was delivered at a 62% loan to value with a 12-month term, has refinanced existing facilities and released equity, designed to enable the borrower to complete the refurbishment of an additional property. The loan is secured on a variety of assets, all of which are in Newcastle city centre, including a newly developed luxury build to rent (BTR) scheme, a number of commercial units and some additional residential apartments.
The deal was introduced by Fiona Smith and Mark Nixon of Finance 55, with Lambert Smith Hampton and Cluttons providing valuations. Marie Pugh of Clarion Solicitors led the legal due diligence on behalf of HREF.
The loan was originated and led by Patrick Davenport-Jenkins, vice president at HREF.
“This loan gives our client the time and flexibility they need to meet their financial aims over the next 12 months,” Davenport-Jenkins said. “They have developed an exceptional BTR scheme in central Newcastle, bringing much needed stock to the city, and our loan will allow them to stabilise the asset and put in place the best long-term financing. At the same time, we are releasing equity to allow them to finish the refurbishment of another property. Newcastle has yet to see an influx of high-quality BTR schemes, compared to other northern cities such as Leeds, Liverpool and Manchester, but there is great potential in the city and we are pleased to be a part of it.”
