Investec

Investec commits to provide £400m in senior loans



Investec Structured Property Finance has committed to provide over £400m in senior loan facilities during the first half of 2017.

It is a record for the development finance provider, which has lent against numerous high-quality real estate schemes across the UK.

These have featured a diverse mix of use classes, including residential, purpose-built student accommodation (PBSA), commercial, build-to-rent and retirement living.

“Favourable fiscal policy continues to support both new and established borrowers of commercial real estate development and investment financing and Investec is ideally placed to provide this, having delivered time and time again on successful schemes,” said Gary Dobson, head of Investec Structured Property Finance.

“We are confident in the prospects for the second half of the year, leveraging both our existing relationships and the strength of the team.”

Investec’s H1 highlights include:

An investment finance facility of £18m to Ballymore Group, representing Ballymore’s first debt financing since exiting NAMA

Three loans totalling around £100m to real estate funds backed by major global private equity and asset managers, taking the total lending in the real estate fund sector to £400m in the last three years:
  -  £70m million across two facilities with Curlew Student Trust, backed by clients of CBRE Global Investors
  -  50% of an £85m development loan to Anthology, established by Oaktree Capital Management

Around £100m lent to leading developers of PBSA totalling five schemes and 2,200 beds in prime locations, including London, Southampton, Bournemouth and Newcastle. Investec has now financed more than 9,000 beds across 17 university cities since the start of 2015

Strong demand for prime residential in zone 2-6 London locations. 

Strong relationships with leading housebuilders – including Meyer Homes (pictured above) and Anthology – have allowed Investec to be very active in this space

A first retirement living scheme, via a £55m loan facility to Auriens for 55 super-luxe residential apartments in Chelsea.

Mark Bladon, co-head of origination at Investec Structured Property Finance, felt the breadth and depth of its lending during the first half of the year showed its market lending ability to provide innovative and efficient loans to new and existing clients

“Our recent investment deal with Ballymore demonstrates Investec’s ability to provide financing across the project lifecycle, offering clients a consistent lender from acquisition, through development and into the investment phase.

“The continued retrenchment of the high street banks from the development financing sector and prohibitive costs of the debt funds has allowed us to continue as the first-choice provider of financing for many borrowers, from established housebuilders through to fast-growing developers and private-equity backed funds.”

Mark added that while the London residential market had remained buoyant and was its core focus area, it had seen a number of new trends emerging during the first half of 2017.

“In particular, our ability and expertise in dealing with real estate private equity funds across the bank enables us to offer innovative and flexible finance solutions, including asset level debt, fund level facilities and strategic hedging, providing a full client offering.” 


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