Hilco Real Estate Finance Provides £8.25M Facility for Repurposed Manchester Airport Hotel
Hilco Real Estate Finance (HREF) has successfully completed an £8.25 million loan facility secured against a former airport hotel in South Manchester. The property, which has undergone a change of use, is now operating as temporary accommodation and is fully let to Manchester City Council on a 10-year lease.
The borrower, a North West-based property investor with a well-established track record, intends to use the funding to support the continued growth of their portfolio across Greater Manchester. The property’s strategic location near Manchester Airport and long-term lease agreement with the local authority offer strong fundamentals for long-term performance.
Jamie Jolly, Managing Director at HREF, commented: “This was a particularly complex transaction due to the nature and term of the lease. Our team was able to leverage its collective expertise to structure a flexible and commercially viable loan that met the borrower’s objectives.”
The asset’s transition from hotel to social housing highlights a broader trend of adaptive reuse in the real estate sector, driven by changing market demands and a growing need for affordable housing solutions. HREF’s willingness to support this transformation underscores its commitment to innovative and purpose-driven lending.
Valuation services for the transaction were carried out by Fisher German LLP, with legal due diligence provided by Clarion in Leeds. Both firms played a key role in facilitating the smooth and timely completion of the facility.
This transaction exemplifies HREF’s ability to deliver tailored financial solutions for complex assets, further reinforcing its position as a trusted lending partner in the dynamic UK property market.
