Grace Completes Refinancing of 832-Unit Northern Portfolio with Shawbrook
London | September 2026
Transaction follows successful execution of Grace’s value-add strategy and a c.22% uplift in portfolio value over aggregate acquisition value.
Grace Real Estate Partners (“Grace”), a UK-focused real estate investment and asset management firm, has completed the refinancing of its Northern Portfolio with Shawbrook.
Grace initially entered the Newcastle market in 2023 through the acquisition of a 478-unit residential portfolio. In June 2025, the firm expanded its presence through the acquisition of a further 354 self-contained studios across three freehold buildings in central Newcastle, creating an 832-unit residential cluster with significant operational scale.
The portfolio has since achieved a valuation uplift of c.22% over aggregate acquisition value, reflecting the progress made across Grace’s business plan, including rental growth, targeted capital expenditure, improved occupancy and the professionalisation of operations.
The new senior financing refinances the portfolio’s existing debt and provides a more efficient, long-term capital structure as Grace moves into the next phase of its business plan.
“The refinancing marks an important milestone for the Northern Portfolio. 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 financing provides an appropriate long-term capital structure for the next phase of the business plan,” said Georges Tohme, Founding Director at Grace.
“We are delighted to have supported Grace with this significant refinancing. The portfolio has demonstrated strong income and operational performance, underpinned by Grace’s targeted investment and active management. By taking the time to understand the assets and the wider business plan, we were able to structure a flexible, long-term facility that provides certainty and supports the next phase of the portfolio’s growth. The transaction also represents the largest facility completed by Shawbrook to date, making it an important milestone for both organisations. We have greatly valued working with the Grace team and look forward to continuing the relationship,” said Tirath Singh, Head of Structured Real Estate at Shawbrook.
Value creation since acquisition
- Creation of an 832-unit residential cluster across Newcastle and the wider North East
- Achievement of a c.22% uplift in portfolio value over aggregate acquisition value
- Ongoing modernisation and energy-efficiency programme, delivered on time and below budget to date
- Continued investment in the physical quality, energy efficiency and sustainability of the portfolio
- Significant rental growth achieved through the active repositioning and re-letting of units
- Professionalisation and integration of property management, leasing and operational processes through Grace’s vertically integrated operating platform
The combination of income growth, targeted capital expenditure and operational improvements has strengthened the quality and performance of the portfolio while providing a platform for further income growth and asset optimisation.
Strategic significance
The refinancing represents the next stage in Grace’s strategy for the Northern Portfolio, moving the assets from the acquisition and initial value-creation phase into a period of continued optimisation and income growth.
Grace will remain focused on further strengthening rental performance, maintaining high occupancy, completing targeted asset enhancements and capturing the remaining embedded rental and operational upside across the portfolio.
The refinancing further broadens Grace’s institutional lending relationships and follows the refinancing of its Central London Trinity Portfolio with QIB (UK) plc in 2025.
The transaction also reflects Grace’s approach to the UK Living sector: acquiring residential assets with strong underlying fundamentals, actively repositioning and professionalising operations, growing income and subsequently optimising the capital structure once value has been established.
Newcastle remains one of the UK’s most supply-constrained rental markets, supported by strong underlying demand and limited new delivery. Average private rents in Newcastle increased by c.9.8% over the 12 months to July 2026, from £1,100 to £1,207 per month (source: ONS).
Grace continues to evaluate residential investment opportunities across Greater London, commuter markets and selected regional cities as it grows its UK residential platform.
This bulletin is provided for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any security, nor shall it form the basis of any investment decision.