Specialist bridge lender Hilco Real Estate Finance (HREF) has closed a £6.7m loan with a leading family-owned property developer in Newcastle upon Tyne.
Structured at a 62% loan to value over a 12-month term, the loan refinances existing facilities and releases equity, allowing the borrower to complete the refurbishment of an additional property.
The loan is secured across various assets, including a new luxury build-to-rent (BTR) development, commercial units, and residential apartments in Newcastle city centre.
The transaction, introduced by Finance 55’s Fiona Smith and Mark Nixon, received valuations from Lambert Smith Hampton and Cluttons, with Marie Pugh of Clarion Solicitors leading the legal due diligence for HREF.
Patrick Davenport-Jenkins, vice president at HREF, who originated the loan, said: “This loan gives our client the time and flexibility they need to meet their financial aims over the next 12 months.
“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.”
Davenport-Jenkins noted that Newcastle holds strong potential for high-quality BTR schemes, in contrast to other northern cities such as Leeds and Manchester, where BTR developments are more established.
