Hilco Real Estate Finance secures a £6.7m loan deal for a Newcastle property developer, highlighting Newcastle’s significant potential for development.
- The loan, structured at a 62% loan-to-value ratio, aims to refinance existing facilities and release equity for further development.
- Assets involved include a luxury build-to-rent scheme, commercial units, and residential apartments within Newcastle’s city centre.
- Valuations were conducted by Lambert Smith Hampton and Cluttons, while legal due diligence was overseen by Marie Pugh of Clarion Solicitors.
- Patrick Davenport-Jenkins from Hilco emphasises the time and flexibility this loan provides to meet financial goals over the coming year.
Hilco Real Estate Finance has finalised a substantial loan agreement amounting to £6.7 million with a prominent family-owned property developer based in Newcastle upon Tyne. This financial maneuvre, orchestrated at a 62% loan-to-value ratio over a 12-month period, is designed to refinance the developer’s existing facilities and release equity for additional projects.
The loan is secured by a diverse range of assets, encompassing a new luxury build-to-rent (BTR) development, commercial spaces, and residential apartments situated in the heart of Newcastle city centre. These elements underscore the wide-ranging nature of the development projects supported by this financial package.
The facilitation of this transaction came through the collaborative efforts of Finance 55’s Fiona Smith and Mark Nixon. The valuation responsibilities were efficiently managed by Lambert Smith Hampton and Cluttons, with Marie Pugh from Clarion Solicitors meticulously handling the legal due diligence necessary for Hilco Real Estate Finance.
The vice president of Hilco, Patrick Davenport-Jenkins, who played a pivotal role in originating this loan, highlighted the advantages this deal brings. According to Davenport-Jenkins, the loan grants the client the requisite time and flexibility to accomplish their financial ambitions over the next year. Additionally, this package aims to stabilise assets and facilitate optimal long-term financing arrangements, allowing for the completion of refurbishments on another property.
Notably, Davenport-Jenkins pointed out Newcastle’s emerging potential for top-tier build-to-rent schemes. He claimed that unlike other northern cities such as Leeds and Manchester, where such developments are more prevalent, Newcastle presents an attractive frontier for quality BTR projects. Such observations reinforce the strategic importance of Hilco’s financial intervention in this context.
This loan agreement provides critical support for ongoing and future developments in Newcastle, emphasising the city’s growth potential.
