Investec Structured Property Finance (Investec), a provider of development and investment finance, has committed to provide over GBP400 million in senior loan facilities in the first half of 2017. Investec has lent against numerous high-quality real estate schemes, across the UK, in an increasingly diverse mix of use classes including residential, purpose built student accommodation (PBSA), commercial, build to rent and retirement living. Investec’s most recent significant investment finance facility is an GBP18 million loan to Ballymore Group, representing Ballymore’s first debt financing since exiting NAMA. Three recent loans, totalling circa GBP100 million, have also been made to real estate funds backed by major global private equity and asset managers, taking the total lending in the Real Estate Fund sector to GBP400 million in the last three years. Investec has also provided GBP70 million million across two facilities with Curlew Student Trust, backed by clients of CBRE Global Investors, plus 50 per cent of an GBP85 million development loan to Anthology, established by Oaktree Capital Management. Investec continues to invest in student accommodation with circa GBP100 million lent to leading developers of PBSA totalling five schemes and 2,200 beds, in prime locations that benefit from an attractive supply demand tension, including London, Southampton, Bournemouth and Newcastle. Investec has now financed more than 9,000 beds across 17 university cities since the start of 2015. Demand is also continuing for well located, good quality residential schemes including prime residential in zone 2-6 London locations. Extensive experience as well as strong relationships with leading housebuilders including Meyer Homes and Anthology have enabled Investec to be very active in this space. In addition, Investec says that retirement living interest is building, with funding provided for the company’s first retirement living scheme, via a GBP55 million loan facility to Auriens for 55 super-luxe residential apartments in Chelsea, South West London. Gary Dobson, Head of Investec Structured Property Finance, says: “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. We are confident in the prospects for the second half of the year, leveraging both our existing relationships and the strength of the team.” Mark Bladon, co-head of origination at Investec Structured Property Finance, adds: “The breadth and depth of our lending during the first half of 2017 demonstrates our market-leading ability to provide innovative and efficient loans to both 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. “Whilst the London residential market remains buoyant and our core area of focus, supported by favourable drivers, we have seen a number of new trends emerging during the period as our client base continues to diversify. 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.”
Property financier Investec offered more than £400m in loan facilities during the first half of 2017, lending against real-estate schemes covering a range of use classes, including purpose-built student accommodation, build-to-rent and residential, commercial and retirement living properties. The latest major Investec financing is an £18m loan to the Ballymore Group, as well as three loans totalling £545m, for which no details have been disclosed.