Hilco Real Estate Finance (HREF) has completed a £24m loan facility to support the acquisition of two new-build residential blocks in Worcester.
The transaction, which involved the purchase of the blocks out of receivership, was completed for a professional residential investor expanding their private rented sector portfolio. One of the properties is now being marketed for sale and the other for lettings. The borrower, whose identity has not been disclosed, is understood to be an established operator growing an already substantial PRS footprint.
The deal was originated by Brad Altberger (pictured), chief executive of Hilco Real Estate Finance, and reflects the lender’s increasing focus on large-ticket, time-sensitive transactions in the specialist finance market.
“This deal showcases HREF’s unique ability to support our clients by moving quickly in complex situations,” said Altberger. “Managing a heavy workload to both resolve matters arising from the distressed purchase of the asset and complete our usual due diligence, under immense time pressure, was a challenge that we rose to with great effect.”
Charlie Job, vice president at HREF, added: “The acquisition of the two blocks out of receivership was an excellent opportunity for the borrower. We were able to provide fast acquisition funding, enabling the borrower to take advantage of the opportunity with certainty of funding and execution. Since completing on the acquisition, the scheme is already over 15% let in a matter of days, evidencing the strong underlying residential demand in the area.”
Valuations for the acquisition were conducted by Newmark, formerly known as Gerald Eve, with legal due diligence handled by Clarion Solicitors.
The Worcester deal marks another significant transaction for HREF, following a record year of activity in 2024 when the firm deployed over £200m of its own capital across 20 bridging deals. That momentum has continued into 2025, with nearly £44m lent in February alone.
Altberger said demand for bridging loans in the £20m+ range is rising, with fewer lenders active at this level. “This deal is a great way to start Q2, after a really active first three months of the year, and we expect to ramp up the levels of lending significantly in 2025.”
HREF was established in 2023 and offers short-term bridging finance across various sectors, with loan sizes from £3m to over £100m. The company has already expanded into Ireland and plans to continue growing its UK loan book throughout 2025. It is a subsidiary of US-based financial services group Hilco Global, which manages more than $5bn in assets.
