Hilco Real Estate Finance has provided a £6.7m loan to a property developer in Newcastle upon Tyne, enhancing the city’s housing landscape.
- The funding structure involves a 62% loan to value over a 12-month term, addressing refinancing needs and equity release.
- The loan is guaranteed by assets such as new build-to-rent developments, commercial sites, and residential spaces.
- This agreement was facilitated by Finance 55, with legal work by Clarion Solicitors and valuations by Lambert Smith Hampton and Cluttons.
- Hilco sees strong growth potential for Newcastle in the build-to-rent sector compared to more saturated markets like Leeds and Manchester.
Hilco Real Estate Finance has extended a significant loan of £6.7m to a renowned family-owned property developer based in Newcastle upon Tyne. This financial backing is strategically structured at a 62% loan to value ratio, covering a term of 12 months. The primary aim of this agreement is to refinance existing financial commitments while simultaneously releasing equity. This move empowers the developer to complete refurbishment on an additional property.
The security for this loan encompasses a range of assets including a newly constructed build-to-rent development, various commercial premises, and residential units located within Newcastle city centre. This diverse portfolio underlines the strength and flexibility of the financial arrangement. These aspects ensure that the developer is well-positioned to stabilise and enhance their property assets effectively.
Introduced by Finance 55, the transaction included pivotal contributions from Fiona Smith and Mark Nixon, facilitating its seamless execution. The valuation process was conducted by established firms Lambert Smith Hampton and Cluttons, ensuring accurate and reliable assessments of the secured assets. Moreover, the legal due diligence was managed by Marie Pugh of Clarion Solicitors, reinforcing the credibility and robustness of the entire operation.
According to Patrick Davenport-Jenkins, Vice President at Hilco Real Estate Finance, the loan provides essential time and flexibility for the client to achieve financial objectives within the upcoming year. He acknowledged the superior build-to-rent scheme crafted in central Newcastle, highlighting its contribution to the local housing market by introducing much-needed stock. Davenport-Jenkins also emphasised the opportunity this loan presents for the developer to implement the best long-term financial strategies while allowing further refurbishments.
Furthermore, Davenport-Jenkins expressed confidence in Newcastle’s potential for high-quality build-to-rent projects, viewing the city as a burgeoning market compared to the more developed landscapes in Leeds and Manchester. This perspective aligns with Hilco’s strategic vision to support innovative urban developments across the UK.
Hilco Real Estate Finance’s substantial loan underscores Newcastle’s promising property development prospects, especially in the build-to-rent sector.
