Quick turnround on £11.5m bridging loan enables debt repayment on student site

An £11.5m bridging loan to repay investment in a Liverpool student accommodation building has been provided by Hilco Real Estate Finance (HREF).

The Platform is a 488-unit purpose-built student accommodation site close to both the University of Liverpool and Liverpool John Moores University and was built in 2021.

The 12-month bridging loan allowed the borrower to repay the existing indebtedness on the recently acquired asset.

HREF was able to turn the deal around at a rapid pace to meet borrower deadlines, moving from initial engagement to funds being transferred in just over 14 days.

HREF director, Steve Allen, said: “We are seeing more enquiries from borrowers in the student accommodation market, and we are very pleased that we were able to deliver funds so quickly on this loan in the highly dynamic Merseyside market.

“This is the second student accommodation completion for HREF over the last 12 months and we see this as a sector where we can add real value.

“The sponsor in this case has a strong track record and the asset is well positioned to take advantage of several strong local universities.”

Max Lewis, HREF chief investment officer, said: “This was a large and complicated transaction that HREF was able to complete in just two weeks, precisely because we are deploying our own capital, and are, therefore, able to lend with greater certainty and faster.”

Valuations for the transaction were undertaken by JLL, and legal due diligence was provided by Clarion.