Hilco Real Estate Finance (HREF) has completed a £6.7m loan to a family-owned property development firm in Newcastle upon Tyne.

The deal was introduced by Fiona Smith and Mark Nixon of Finance 55.

The loan has refinanced existing facilities and released equity, enabling the borrower to complete the refurbishment of an additional property.

The facility 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.

“This loan gives our client the time and flexibility they need to meet their financial aims over the next 12 months”

The loan was provided at 62% loan to value with a 12-month term.

Lambert Smith Hampton and Cluttons provided the valuations, while Marie Pugh of Clarion Solicitors led the legal due diligence on behalf of HREF.

The loan was originated and led by Patrick Davenport-Jenkins (pictured), vice president at HREF, who 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.

“Newcastle has yet to see an influx of high-quality BTR schemes… but there is great potential in the city”

“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.”