United Trust Bank was approached by a longstanding broker partner to provide an £18m investment loan on a large development in a popular Midlands city.
The borrower is an established developer and operator of Build-to-Rent accommodation with a successful 15-year track record in the Living sector, and their investment partner, a private family office with a varied portfolio of real estate assets both in the UK and abroad.
The scheme comprises 97 one and two bedroomed apartments created from the conversion of two Grade II listed buildings and one new-build block on the site of a former heritage factory. Most of the scheme reached practical completion in the summer of 2024 and proved extremely popular with high occupancy achieved very quickly.
UTB agreed to provide the £18m loan required to refinance the original senior debt and release equity to the joint venture partners. The exit is expected to be from the sale of the scheme to a new real estate investment fund being set up by the developer and institutional investors, which is expected to take place within the 2-year committed term.
| Borrower | Build-to-Rent Developer and Operator |
| Amount | £18m |
| Loan Type | Investment Loan |
| LTV | 68% |
| Term | 24 month terms |
| Location | Midlands |
| Loan Purpose | Refinance, equity release and stabilisation |
| Special Feature | New to Bank customer |