Real estate investor Castleforge has sealed a £37m loan to refinance a portfolio of 12 apartment blocks situated across England.
The residential property investment loan from specialist lender Secure Trust Bank (STB) Real Estate Finance will be used to fund the London-based investor's multi-residential collection for the next four years.
Comprising 602 flats and 798 beds, the portfolio includes blocks in Lancashire, Warwickshire, Norfolk, Suffolk, Greater Manchester and the Wirral. STB has provided finance for the acquisition and refurbishment of the 12 blocks since 2019, and this refinancing will allow the borrower to complete its business plan
£3.6m of the facility has been issued as a bespoke capital expenditure loan. This will enable Castleforge to draw down funds for refurbishment works in a streamlined manner. The overall structure allows Castleforge to fulfil its long-term strategy of acquiring, refurbishing, adding value and selling the portfolio.
Jayan Patel, Castleforge's transaction lead, said: "It was a pleasure to once again work with Secure Trust Bank, which has been a longstanding and valued partner. This refinancing consolidates our existing arrangements into a single, efficient package and provides the flexibility needed to continue enhancing the quality and value of the portfolio."
Earlier this year, the bank provided Castleforge with a £26.6m loan to refinance a separate portfolio of nine apartment blocks across the Midlands and the north of England.
The latest deal was headed up by Barry Gorton, Secure Trust Bank's Head of Portfolio Management, with the support of Relationship Manager James Reeves.
Barry said: "We are delighted to see this deal cross the finishing line. From the get-go, it was important that we understood and subsequently tailored the facility around Castleforge's business plan, which we have certainly grown accustomed to over the past six years. I look forward to working with Jayan and the team in the future."
James added: "Thanks to our longstanding relationship with Castleforge, we were able to provide a bespoke loan structured around the business's long-term plans. This was crucial in ensuring the deal's near-seamless completion, alongside the team's specialist knowledge and experience in property finance."
Visit the Secure Trust Bank Real Estate Finance website for more information, or its dedicated residential property investment area.