Redwood Bank has supported property developer and landlord Nicholson Group as it moves into the next stage of its growth strategy, with the lender refinancing three loans on apartment blocks as their fixed terms came to an end.
The latest lending follows a relationship that has been in place for five to six years, during which Nicholson Group said Redwood has combined quick decisions with an understanding of the realities of managing a complex property portfolio.
Rather than relying only on its original lending assumptions, Redwood assessed the current performance of the portfolio, taking account of stronger loan-to-value ratios and a higher rent roll when structuring the new terms.
According to Nicholson Group, that approach helped reduce monthly payments while allowing the business to continue paying down debt as it pursues further growth.
Paul Nicholson, chief executive of Nicholson Group, says: “Every transaction with Redwood in the past five to six years has been straightforward and quick. Senior team input is rapid, not bogged down in endless meetings. They truly deliver on a client-centric approach.”
Nicholson Group, founded in 2008, focuses on property renovation and rental accommodation across the North West of England. Its latest refinancing underlines the importance many established landlords and developers place on lenders that are prepared to look at how assets are performing in real time, rather than taking a purely formulaic approach.
Nicholson adds: “Redwood listens. They aren’t a ‘computer says no’ lender. They understand the commercial realities – our rent roll had increased significantly, lowering the LTV on all loans.
“Without lengthy valuations, they offered a competitive interest rate based on the new LTV, which allowed for almost instantaneous signing.”
Gary Wilkinson, chief executive and co-founder of Redwood Bank, says the lender expected to keep building on its relationship with the group as it expands.
Wilkinson adds: “We’ve built a strong relationship with Paul. These deals reflect our shared values and commitment to agreeing deal terms efficiently.
“Nicholson Group exemplifies the professionalism we’re seeing in the property market and we look forward to doing more business together.”
The deal also points to the continued appeal of lenders that can make swift calls on refinancing cases where a borrower’s underlying position has improved, particularly in parts of the market where portfolio performance and rental growth can materially change the terms available.
