The reason for the loan was to allow the borrower, a landlord and rental living operator, to redeem their existing debt and to restructure in order for the company to achieve significant growth — therefore it was decided for the relevant assets to be moved out of the current portfolio and under a separate holding.

The facility has 75% LTV and a 12-month term.

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The company, which operates primarily in the North West of England, plans to exit through redeeming the bridge with a term lender with lower rates, or through the sale of the assets, after the demerger occurs.

The security is made up of three purpose-built residential blocks in Greater Manchester comprising income-producing 66 fully let flats.

Caroline Small, senior analyst at Blue Shield Capital, said: “We are delighted to have closed what was a very complex loan involving working with the borrower on a restructuring, in a short timeframe.”