Redwood Bank has renewed its support for Nicholson Group after reviewing the performance of three apartment block loans as the facilities approached the end of their fixed terms.
The specialist bank has restructured the borrowing after assessing the current performance of the portfolio rather than relying only on the original lending assumptions.
According to the businesses, improved loan-to-value ratios and higher rental income allowed Redwood to offer revised terms designed to reduce monthly payments while supporting further debt reduction.
Nicholson Group, founded in 2008, focuses on property renovation and rental accommodation across the North West of England.
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.”
He 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: “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 latest transaction underlines the importance of lender flexibility for established landlords and developers managing maturing debt against stronger portfolio performance.
With further projects said to be in the pipeline, the two businesses indicate that they expect the relationship to continue over the longer term.
