GRE Finance has completed two loans worth circa £10m secured against a £50m GDV asset repositioning deal and an operational country house hotel.
The company provided a stretch senior acquisition loan of £5.71m at 95% LTPP to Medina Capital Investments against a freehold vacant 50,000 sq ft office building on a three-acre site in Hainault, North East London.
Medina intends to submit a planning application for a residential development of circa 50 townhouses and a block of 40 affordable apartments.
GRE Finance has also agreed a second senior loan of £3.7m against a freehold, operational, 82-room hotel in Burnham (pictured). The agreement will refinance existing debt on the property and pay for the continued refurbishment of the Burnham Beeches Hotel, bringing its GDV to circa £16m after stabilisation.
Clare Grimes, associate director at GRE Finance, said: “As a lender with a strong focus on partnerships, it’s been a pleasure working with two experienced sponsors who each have a firm vision for how to create real estate that better suits the needs of its users. We are seeing more and more appetite among investors and developers to reposition obsolete offices and to create additional value in operational assets, and expect to be having many such conversations on it at UKREiiF as we explore strategic opportunities to grow our loan book. I would like also to thank SPF as the introducing advisor for both of these transactions.”
Daniel Benton, director at GRE Finance, added: “While the market continues to be challenging, savvy investors recognise that now is the time to seize value-add opportunities. Given our in-depth understanding of the property market and our experience in taking on planning risk, we are more than ready to support them to do so and expect this trend to continue through 2024.”
SPF acted as broker on both deals.
