GRE Finance, a specialist lender to the UK Real Estate market, has completed two loans, worth c. £10 million, secured against a £50m GDV planning reposition deal and an operational country house hotel, as the firm continues to expand its loan book amid significant opportunities for lending against value-add real estate assets.

GRE Finance has provided a stretch senior acquisition loan of £5.71 million against a freehold vacant 50,000 sq ft office building on a three-acre site in Hainault, north east London. Although the property does not benefit from planning permission, GRE Finance was able to provide a loan at 95% LTPP given the extremely strong planning case, very experienced sponsor and access to further equity if needed.

The property is allocated in the Redbridge Local Plan as an ‘opportunity site’ with strong potential to come forward for residential and mixed-use development. The borrower, Medina Capital Investments, intends to submit a planning application for a residential development of c. 50 townhouses and a block of 40 affordable apartments. Upon completion, the scheme will have a GDV of approximately £50 million.

The specialist lender has also agreed a second senior loan of £3.7 million against a freehold, operational, 82-room hotel in Burnham. The agreement will refinance existing debt on the property and pay for the continued refurbishment of the Burnham Beeches Hotel, bringing its GDV to c. £16 million after stabilisation. The property is 1.2 miles north of Burnham Station, with services on the Elizabeth Line and main line offering direct routes into London Heathrow airport, as well as Paddington, Maidenhead and Reading, and is set among 7.7 acres of landscaped gardens, function rooms, a swimming pool, and a fitness and wellness centre.

GRE Finance specialises in pre-planning and asset management-led situations and is able to provide debt and preferred equity between £3m and £50m in all asset classes in London, the South East and other major UK cities.

The two latest deals by GRE Finance brings its current loan book to £120 million secured against residential and commercial property. Earlier this year, the specialist lender recently hired Clare Grimes from Octopus Real Estate and Archie Dickinson from Hilltop Credit Partners to take advantage of what it has referred to as a ‘once-in-a-decade opportunity’ in the real estate finance market.

SPF acted as broker on both deals.

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, said: “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.”