Record H1 for Investec SPF with over £450 million of lending

23 Jul 2018

– Increased loan book exposure to investment financing

– £97.5mn development facility provided to Cain International
for The Stage, Shoreditch

Investec Structured Property Finance (“Investec”), a leading provider of development and investment finance, announces that it has committed to provide over £450 million in senior loan facilities during the first half of 2018, demonstrating the ongoing demand from UK real estate borrowers for flexible financing solutions.
 
Investec has lent against a variety of both commercial and residential real estate schemes, primarily in London and the South East, which include one of its largest ever development deals and record loan to a Private Rented Sector (“PRS”) scheme.
 
Highlights include: 
  • Growing loan book focus on investment financing: Building on 2017, Investec has increased its investment financing as it diversifies its risk exposure, broadens the loan book and provides clients with access to financing across the real estate lifecycle. 
  • Record development deal and increased loan arrangement position: Leveraging the team’s growing
    reach and reputation in the market, Investec is increasingly working on major schemes, clubbing together with other lenders to support its clients:
    • Arranged a £72mn facility, totalling a £43mn commitment from Investec and £29mn of debt
      from the Israeli Bank HaPaolim, to fund a 140,000 sq ft PRS and co-working King’s Cross scheme
    • Raised £195mn for Cain International led consortium redeveloping The Stage, as part of £390mn club loan. Investec committed £97.5mn from its own balance sheet and a further £97.5m from Harel Insurance Group.
  • Demand continues for well located, good quality owner-occupier and PRS schemes: Demand for prime residential in zone 2-6 London and South-East locations continues. The team’s extensive experience as well as strong relationships with leading housebuilders including Galliard and Comer Homes have enabled Investec to fund a variety of schemes, including Comer Homes’ 311-bed Private Rented Sector development in Bracknell.  
 
Gary Dobson, Head of Investec Structured Property Finance, said:

“Real estate continues to be an important asset class and, despite wider market uncertainty, the strength of the Investec offering has allowed us maintain our position as funder of choice to a diverse mix of borrowers, ranging from high net worth property entrepreneurs through to global institutions.
 
"Coming up to ten years on from the Global Financial Crisis, whilst the lending landscape has changed immeasurably with a wave of new entrants, we continue to benefit from the strength of the relationships that we have built up during nearly 20 years of real estate financing.”
 
Simon Brooks, Loans origination at Investec Structured Property Finance, added:
“The significant experience and market knowledge across the team has allowed us to remain an active provider of both investment and development finance during the first half of the year, achieving record volumes and lending against a number of flagship schemes.
 
“Reflecting our growing capabilities, the period has seen us support our clients with a number of large facilities whilst further leveraging our institutional relationships to bring additional third-party debt. The majority of our committed funding during the period has been to longstanding clients, who are able to benefit from our increasingly broad offering and the teams deep rooted knowledge of the property market.”
 
“The real estate market continues to polarise, with strong demand for good quality, well located residential and commercial property, and increasing investor and developer interest in alternative real estate and the attractive returns that can be found.
 
"Whilst favorable fiscal policy remains in place, the case for debt financing is strong and we will continue to take a prudent and disciplined approach to lending, which has served us so well in the past.”  

Find out more about Investec's development and investment funding solutions