A family run property investment vehicle is embarking on a series of developments across the North East and beyond after securing a £100m refinancing package.
Union Property Services was formed last year by Mukesh and Promila Sehgal, who founded the fashion and clothing business Visage in the 1980s, and their son Raj Sehgal.
The Newcastle-headquartered property asset and investment management firm has now secured a £100m refinancing package with NatWest, a deal which will help the firm’ plan to grow through the acquisition, refurbishment and development of new accommodation across the UK, in particular the North East.
In addition to creating new homes, student accommodation and business premises, the firm said the investment will also benefit the local construction industry and its supply chain, through new developments.
Raj Sehgal, director of Union Property Services, said: “The refinancing facilities will allow us to deliver on our clients’ growth strategy which includes developments throughout the North East region.
“We are committed to investing in these communities and rely on our continuing relationship with NatWest to make this a reality.”
David Salisbury, head of NatWest Real Estate Yorkshire and North East region, said: “We are delighted to support the Sehgal family and Union Property Services with funding which complements their business growth ambitions.
“We have been working with them for a number of years and have developed a strong relationship with the directors and we are delighted to be part of their success for the future.”
It was back in 2010 that the Sehgal family sold its Visage clothing empire to Hong Kong-based Li Fung in a £175m deal.
Visage started life in the 1960s as a door-to-door operation but swiftly grew to incorporate market stalls and then shops until the early 1980s, when it focused on importing.
The South Shields-based firm, which has a base in Washington, was bought by Li & Fung as part of moves to raise its European profile.
Visage had been predominately owned by Raj Sehgal, his sister Anita Mehan and her husband Sanjeev Mehan.
The company was started by Raj and Anita’s parents Mukesh and Promila Sehgal and now supplies imported, private-label clothes to high street and mass retailers in the UK.
As well as the North East centres, the £175m deal included its Manchester design centre and branch offices in Asia and India.
Earlier this year Raj Sehgal and his brother-in-law Sanjeev Mehan appeared on the Sunday Times Rich List, coming in at number 13 in the regional rankings with a fortune of £150m, a figure which hadn’t changed since the previous year.