Shawbrook has completed its largest real estate loan ever, delivering a £60.5 million refinancing package for Grace Real Estate Partners, a UK-based firm specializing in residential property investments. This five-year, interest-only arrangement secures 832 units across Newcastle and the surrounding North East area, transitioning the debt structure from short-term acquisition financing to long-term capital backing.

The property portfolio expanded from its original 478-unit purchase in 2023 to its current size after Grace acquired 354 self-contained studios in June 2025. Through a focused value-add approach, the investor enhanced asset quality, raised occupancy levels, and improved energy efficiency—all achieved ahead of the planned timeline and within budget. These efforts drove a 22% total value uplift since the initial acquisition, supported by rising rental income and strategic property upgrades.

Shawbrook’s Structured Real Estate division designed the loan to align with the portfolio’s revenue stream, offering adaptability for future expansion. The agreement highlights Grace’s operational growth and consistent income performance, with both organizations stressing how the financing complements the investor’s broader strategy.

Tirath Singh, head of Shawbrook’s Structured Real Estate team, commented that the portfolio’s results stemmed from disciplined investment and proactive management. “By understanding the assets and wider business plan, we provided a flexible, long-term facility to support the next phase,” he said.

Georges Tohme, Grace’s founding director, credited Shawbrook’s engagement with both the portfolio and the firm’s long-term vision as essential to the deal’s structure. “Shawbrook and their professional and dedicated team engaged with both the portfolio and our wider business plan from the outset, and that understanding was central to delivering a transaction of this scale with certainty,” he explained. “Since our initial investment in Newcastle in 2023, we have built significant operational scale, strengthened income performance and continued to invest in the quality and energy efficiency of the assets. The new facility provides an appropriate long-term capital structure for the next phase of our business plan. We are thrilled with the outcome of this refinancing.”