Ellis Sher

Maslow targets over £300m of additional annual originations

Maslow Capital has revealed that it aims to increase its originations by an extra £300m-400m per year, following the injection of new funding.

In November 2020, the specialist development lender announced a funding agreement with international asset manager M&G Investments

These new funds, invested in loans managed and originated by the lender’s platform, will benefit from Maslow’s specialist construction underwriting knowledge and UK-wide relationships.

The lending strategy will focus on the delivery of residential, PBSA, BTR, PRS, co-living, retirement living, and aparthotel developments.

Maslow’s continuing partnership with Sixth Street, coupled with the new M&G mandate, will enable the lender to deliver more housing across the UK.

In an exclusive interview with Development Finance Today, Ellis Sher, CEO and co-founder of Maslow Capital (pictured above), said that the “sheer scale” of both funding arrangements means that the lender can do more.

"The M&G mandate is specialising in SME housebuilders in the sub-£20m category, [while] the [Sixth Street] mandate is for the larger ticket deals above £20m.”

"The presence of M&G just allows us to expand our participation in the market [and] support more projects."

When asked how Maslow was looking to grow, Ellis reported that it would like to increase its annual originations by a further £300m-400m a year.

Ellis shared with DFT how the lender has started 2021, in terms of enquiries, completions and general outlook. 

He believes there has been a definite change in the broking community, with more now moving towards residential business, rather than commercial. 

“I would say the mix of deals is changing; there's a lot more BTR and PRS and other forms of residential living, like co-living and shared-ownership, that we're seeing,” he added.

“So, we definitely see the nature of residential development shifting a bit."

Maslow is also continuing to witness a good deal of enquiries in the PBSA sector — especially in towns where the stock is “tired”. 

Ellis expects this could be a result of more people looking at further education due to apprenticeship and trainee programmes being cut, or deciding to re-skill.

"What that means is people will be encouraged to build," he commented.

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