STB Real Estate Finance funds £37m refinance loan for apartment block portfolio

The residential property investment loan will be used to fund the investor’s multi-residential collection for the next four years.

Comprising 602 flats and 798 beds, the portfolio includes blocks in Lancashire, Warwickshire, Norfolk, Suffolk, Greater Manchester and the Wirral.

STB has provided finance for the acquisition and refurbishment of the 12 blocks since 2019, and this refinancing will allow the borrower to complete its business plan.

£3.6m of the facility has been issued as a bespoke capital expenditure loan, enabling Castleforge to draw down funds for refurbishment works in a streamlined manner.

The overall structure allows Castleforge to fulfil its long-term strategy of acquiring, refurbishing, adding value and selling the portfolio.

Jayan Patel, Castleforge’s transaction lead, said: “Once again it was a pleasure to work with STB, which has been a longstanding and valued partner.

“This refinancing consolidates our existing arrangements into a single efficient package and provides the flexibility needed to continue enhancing the quality and value of the portfolio.”

The deal was headed up by Barry Gorton, STB’s head of portfolio management, with the support of relationship manager James Reeves.

Barry commented: “We are delighted to see this deal cross the finishing line.

“From the get-go, it was important that we understood and subsequently tailored the facility around Castleforge’s business plan, which we have certainly grown accustomed to over the past six years.

“I look forward to working with Jayan and the team in the future.”

James added: “Thanks to our longstanding relationship with Castleforge, we were able to provide a bespoke loan structured around the business’s long-term plans.

“This was crucial in ensuring the deal’s near-seamless completion, alongside the team’s specialist knowledge and experience in property finance.”