Lloyds Bank Commercial Banking has supported Galliford Try through a competitive financing process to sell a £25m shared equity mortgage portfolio...
Many UK housebuiders currently hold millions of pounds of shared equity loans which could be invested in new land or building more homes.
Patron Capital acquired Galliford’s portfolio which was secured against properties across more than 101 developments, with most of the loans originating from Galliford Try between 2008 and 2013.
Mark Elliot, Managing Director of Capital Markets at Lloyds, said the transaction demonstrated the bank’s solutions-led approach to solving the corporate finance challenges its clients faced.
“It is also a great example of the Bank’s ‘Helping Britain Prosper’ plan in action, in which we have committed to helping the UK housebuilding industry build more homes,” said Mark.
“This transaction has released more capital back into the sector to support this initiative.”
Greg Fitzgerald, Executive Chairman of Galliford Try, added: “We are delighted to have worked closely with the team at Lloyds Bank Commercial Banking to conclude the sale of our shared equity portfolio at balance sheet value, freeing cash to be invested in our development business and removing an unnecessary administrative burden.”
Keith Breslauer, Managing Director of Patron Capital, concluded that shared equity mortgages were popular during the “window of limited mortgage lending post-recession.”
“Now, as housebuilders increasingly focus their balance sheets on pure development, we see a significant opportunity to acquire and manage these loans via our Optimum Credit platform, and this deal represents an excellent potential return,” added Keith.
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