£24m loan secures acquisition of Worcester residential blocks

A £24m loan from Hilco Real Estate Finance has fueled the acquisition of two newly built residential blocks in Worcester.

The secured loan to a residential private rented sector (PRS) investor enabled the vacant properties to be acquired from the fixed charge receivers of shares.

One property has been marketed for lettings and the other for sales, and since the deal, the scheme is now 15% full.

Ben Slack, Marie Pugh and Abiel Ghebru from Clarion’s Banking and Finance team acted for Hilco Real Estate Finance, overseeing the financing and real estate due diligence. The transaction was completed in less than two weeks from instruction.

Slack, partner at Clarion said: “The tight timeframes made this a complex transaction with plenty of intricacies to navigate, but our team’s expertise and dedication ensured a seamless process. We’re proud to have advised Hilco on this deal and look forward to working with them on future transactions.”

Charlie Job, Vice President at Hilco Real Estate Finance said: “Acquiring the two blocks from receivership presented an excellent opportunity for the borrower. With Clarion as a trusted adviser, we were able to provide the necessary funding quickly, allowing the borrower to capitalise on the opportunity.

“Since the acquisition, the development has already achieved over 15% occupancy within just a few days.”

Valuations for the transaction were undertaken by Newmark, formerly known as Gerald Eve.