As part of the £7.9 million loan, £2.75 million was syndicated to the Vernon, Mansfield and Cumberland building societies.
The arrangement was facilitated by the Newcastle's subsidiary, Newcastle Strategic Solutions Limited (NSSL), and follows a similar syndication agreement earlier in the year with the Cumberland and Newbury building societies. Similar arrangements are expected in the future.
Secured on a portfolio of well let investment premises, the loan opens up fresh lending opportunities for the three partner building societies looking for a foothold on the growing commercial market. Within the arrangement each of the societies will underwrite their own share of the advance, on which they will earn interest. At the same time Newcastle Building Society's commercial lending division will retain the administration of the loan, and its borrower relationship.
Colin Greaves, the managing director of NSSL, said: "This syndication agreement has been a good fit for everyone involved. The Vernon, Mansfield and Cumberland were looking for the right partnership opportunity to benefit from a slice of commercial loan business, while we were looking to enhance our strategic solution offering to other financial service providers.
"Over the past decade the Newcastle has gained significant skills and experience in commercial lending, and it is this knowledge that it can now offer through NSSL."
John Leveson, of the Cumberland Building Society, added: "This is the second syndication arrangement we have made with the Newcastle and we are delighted to be working with them again. The partnership approach gives us access to high quality commercial investment business, and opens the door to a different market place."
