Eight-figure deal signals ‘vote of confidence’ at Newcastle’s Quorum Business Park

An eight-figure refinancing deal has completed at Quorum Business Park in Newcastle.

BlackRock Real Assets provided a £20m first mortgage loan to an affiliate of American private equity firm Cerberus Capital Management to refinance eight of the 15 buildings at the office park.

The loan is made up of £15m initial funding and a further £5m available once certain capital improvement conditions are satisfied.

Quorum comprises close to 500,000 sq ft of Grade A office space, run by Broadoak Asset Management and built primarily between 2009 and 2012.

Cerberus European Servicing MD Robert Falls commented: “Since taking ownership of this property in 2012, we have steadily grown its occupancy and plan to continue to increase its use going forward.”

Fergus Trim, director at asset management firm Broadoak, hailed the deal as “a vote of confidence” in Quorum and the wider Newcastle office market.

He continued: “Prospects have improved in Newcastle in recent years, fuelled by multiple years of positive net absorption, low levels of new development, and office conversions reducing secondary stock.

“Newcastle availability of Grade A has tightened, and this historic low vacancy has resulted in upward pressure on rental levels.”

Quorum Business Park is located four miles north of Newcastle city centre.

Eduard Mantz, BlackRock’s originator for real estate debt Europe, said: “Cerberus has been a repeat borrower of the BlackRock Real Estate Debt team, both in the US and Europe.

“We are very pleased to have been able to support this renowned investor in their commitment to one of the premier business parks in the North of England.”

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