As part of a £13.5 million loan, arranged by Newcastle Building Society’s commercial lending division, £4 million has been syndicated to the Cumberland and Newbury.
The syndication is the first of its type completed by NSSL, and it is expected to lead to similar loan agreements with other lenders.
Robert Hollinshead, the Chief Executive at the Newcastle, said: “We knew the Cumberland and the Newbury were looking for the right partnership opportunities to enter into with this type of lending. Within this arrangement they have individually underwritten the lending and will earn interest on their respective £2 million share of the advance whilst we will continue to look after the loan.
“Over the past decade we have gained considerable experience and skills in commercial lending, and it is precisely this know-how that we are offering through NSSL.”
John Leveson, of the Cumberland Building Society, said: “We are particularly pleased to have had the opportunity to be a partner in this syndication, and we are looking forward to being involved in future similar deals.”
Nigel Fleming, the chief executive of Newbury Building Society, added: “The real benefit of this partnership is that it gives us access to high-quality commercial investment business, and to different market places.”
NSSL was set up as a wholly-owned subsidiary of Newcastle Building Society to offer strategic solutions, including commercial lending, mortgage processing, online banking, call centre provision, product development and mortgage broking, to third parties.
In the 2003 Mortgage Finance Gazette Awards Newcastle Building Society won Innovator of the Year, specifically for its services provided by NSSL to the wider financial market. It was also the third year in succession that the Newcastle picked up the industry publication’s prestigious prize for innovation.
Newcastle Building Society is the largest building society based in the North-East, and one of the strongest mutuals in the UK. It has more than 800 staff and assets under administration in excess of £3.3 billion.
