£5.6 million refinance for North West property manager
Friday September 10, 2021
Rigby Commercial secures new funding with HS credit
Rigby Commercial, the property arm of Blackpool-headquartered The Rigby Organisation (Rigby), has secured a new £5.6 million finance package with the support of our Debt Advisory team.
The North West property manager, which operates a portfolio of more than 50 commercial and residential properties around Preston and the Fylde coast, has refinanced with the support of specialist lender HS Credit. The Stockport-based funder is the UK subsidiary of Malaysia’s Hap Seng Bank and brings significant property experience to the relationship.
The long-term financing will enable Rigby to invest in its buy-to-let portfolio while continuing to support commercial tenants as they implement their individual growth strategies post-COVID.
The deal was led by our Debt Advisory team, which had been briefed to help Rigby secure a new long-term funding partner following a short-term bridge lending agreement. The team was introduced to Rigby prior to the outbreak of COVID-19, when a planned deal with another funder was secured by FRP. However, following a pause in proceedings due to the pandemic, an alternative lender was sought, with the team then introducing Rigby to new market entrant HS Credit.
Tom Flack, Group Finance Director at Rigby, said: “Our commercial and residential property offering has long been an important part of the wider group and enabled us to invest for the future. Having initially sought new backing just prior to the onset of COVID-19 in the UK, we’re extremely pleased to be working with HS Credit as we continue to support our tenants – many of which are independent retailers – as they begin to trade out of the pandemic.”
Andy Pickford, Debt Advisory Director at FRP, added: “This deal marks the start of a new relationship between one of the North West’s most diverse and entrepreneurial organisations and a well-capitalised lender that continues to increase its presence in the region. Due to the uncertainty created by COVID-19, commercial real estate has naturally been a challenging arena in which to negotiate and secure funding in recent times. However, this deal is indicative of the growing stability in the market, with HS Credit and its specialist property expertise likely to play an important role in the long-term plans of Rigby Commercial and the wider Rigby Organisation.”
Rigby Commercial is part of The Rigby Organisation, which also operates businesses in the hospitality and energy sectors.
Steve Jennings, CEO of HS Credit, said: “This is a perfect example of our flexible approach to lending; in that we tailored a solution to our client’s strategy by enabling the sale of long-standing vacant assets as well as residential units currently being developed – notably, with no early redemption charges and by appreciating the granular mix of the portfolio and its income stream.”