"This facility was a great opportunity to work with Castleforge once again, and having an existing understanding of the company’s strategy was key to helping deliver it"
- James Reeves - Secure Trust Bank
Real estate investment firm, Castleforge, has sealed a substantial £26.6m residential property investment loan provided by Secure Trust Bank Real Estate Finance to refinance a portfolio of nine apartment blocks located across the Midlands and the north of England.
The properties, located in Leeds, Derby, Preston, Walsall, Cannock and Leek, have all undergone significant renovations over the past five years, with the number of lettable rooms increasing from 302 to 543. Among the assets is a brick-built former mill, converted office buildings and a Grade II listed former school building (pictured).
This follows Castleforge’s long-term strategy of acquiring multioccupancy residential buildings and upgrading them using a dedicated property loan facility to improve the quality of accommodations.
On the completion of the deal, Jayan Patel, Senior Finance Business Partner at Castleforge, said: “Having worked with Secure Trust Bank for six years now, we had confidence in the team’s ability to ensure this deal reached a successful conclusion. This portfolio was always going to be a complex deal, considering the number of properties involved, but the team’s specialist knowledge and experience in property finance was crucial in delivering a near-seamless process.”
Last year, STB provided a residential investment and capital expenditure loan worth £3.9m to rejuvenate Castleforge’s Spring Court, a popular block of flats among students and healthcare workers in Ipswich.
The deal was led by Barry Gorton, senior relationship director at STB Real Estate Finance, alongside James Reeves, who supported Barry throughout the deal.
“It was a pleasure to work with Jayan and Castleforge once again," said Barry, "Over the past six years, we have been able to build a strong working relationship that is beneficial for both parties. This enabled us to provide a facility tailored to their needs, which was invaluable to its completion.”
James added: “This facility was a great opportunity to work with Castleforge once again, and having an existing understanding of the company’s strategy was key to helping deliver it. Thanks to our longstanding relationship, we were able to surmount all matters and reach a successful conclusion.”
