A block of flats in Ipswich, Spring Court, is set to be renovated by Castleforge after securing a c. €4.6m loan from Secure Trust Bank Real Estate Finance. The flats are popular among students and healthcare workers and are within walking distance of the University of Suffolk’s Ipswich campus and Ipswich Hospital. This is the third loan from the bank to Castleforge, taking the total lending to c. €38.8m. The investment firm's long-term strategy is to acquire multi-occupancy residential buildings and upgrade them using a dedicated capital expenditure loan facility before holding them for long-term rental yield.
Jayan Patel, Management Accountant at Castleforge said: “We are extremely pleased that we’ll soon be able to transform Spring Court thanks to another deal with STB Real Estate Finance. This is our third deal with STB, and the continued support of our projects is something we value greatly. We are on a mission to boost quality around the rental sector, especially in large blocks that are in need of care and attention. Given that the demand for rental properties is increasing, our long-term objective is to improve the quality of mid-to-large apartment blocks to ensure renters and students can enjoy a greater standard of living. The team at Secure Trust Bank Real Estate Finance has completely understood our financing strategy in real estate. Few banks offer capital expenditure loans, and this route of financing has facilitated the successful refurbishment of multiple blocks of flats in key areas around the UK. The Secure Trust Bank team, with its specialist knowledge and experience in property investment, is the reason we have turned to them again.”
Barry Gorton, Senior Relationship Director from STB Real Estate Finance said: “It’s been a pleasure to deal with Jayan Patel and Castleforge again. The opportunity to help upgrade and modernise apartments builds into the ethos and values we hold as a bank. We want to play our part in building a future where people can live comfortably, and we’ve got full faith that Castleforge is doing things the right way.”
Brotherton Real Estate introduced Castleforge and STB Real Estate Finance and has provided a key advisory role throughout the three transactions.
Tanya Wolfe, Managing Director of Brotherton Real Estate, said: “We are delighted that such a strong partnership has been forged between the parties since the first transaction in 2022. Whilst the debt market has become more fragmented over the last five years, lending appetite remains buoyant for quality affordable private rented accommodation backed by experienced, institutionally owned sponsors and operating platforms.”
Image provided by WPR Agency.
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