The Investment Advisory team of global real estate firm CBRE has announced that it advised Trafford Council to loan The Hut Group (THG) £70 million to finance the development of its new headquarters.
Located at an 11.6-acre site at Manchester Airport, THG’s new £100m headquarters will provide over 300,000 sq ft of office space and car parking facilities for the beauty and wellness-focused group.
Highlighting the value of the loan, Henry Randolph, Director, Investment Advisory, CBRE stated: “This is a great example of our ability to identify high-quality schemes and borrowers and then structure a debt package that provides appropriate risk and return for Trafford Council whilst delivering competitive terms for the borrower by offering flexibility, certainty and speed of delivery.”
The £70m loan is seen by Trafford Council as the latest in a portfolio of “prudent” investments in the real estate sector, with the return on investment from the loan enabling the council to support public services whilst making a “significant” contribution to the local economy.
Commenting on the loan, Councillor Tom Ross, Trafford Council’s Executive Member for Finance and Investment, said: “The Council’s investment will support huge job creation and economic growth in a key Greater Manchester location at Manchester Airport.
“At a time when local authority budgets remain under pressure, this addition to the Council’s investment strategy is very welcome. The Council’s investment strategy continues to provide us with revenue which we can then use to support our frontline services.”