Property finance specialist Glenhawk has agreed to a £200m senior funding line with NatWest Markets, supporting its ambition to lend £1bn annually by 2024.
The new facility, which sits alongside an existing funding line with JP Morgan, will support Glenhawk’s live loan book size, which has doubled over the past 12 months.
Glenhawk says it will support the expansion of its unregulated product range, which will focus on refurbishment and light development projects, larger loan sizes and commercial real estate, as well as an enhanced regulated offering.
Glenhawk says it has seen strong demand for its short-term lending products in 2022, particularly in the residential space due to an acute shortage of stock, a strong labour market and an ongoing focus on home ownership.
It reported three consecutive months of record lending in May, June and July.
The UK bridging sector recorded a strong second quarter: bridging loan transactions were 10.4% higher than in Q2 2021, and up by 17.4% on the previous quarter, while loan books reached a record £6.1bn, up by 22% year-on-year.
Daron Kularatnam, treasurer and ESG director at Glenhawk, said: “The market dislocation we are witnessing as a result of the current macroeconomic volatility provides an attractive window for highly disciplined and well-capitalised lenders. Furthermore, the fundamentals underpinning homeowner, commercial and mixed-use asset real estate remain particularly compelling.”
Jennifer Wallaert, managing director at NatWest Markets, added: “This transaction demonstrates NatWest Markets’ expertise and capabilities in the UK specialist lending space and associated hedging. Supporting UK businesses and ultimately providing tailored innovative funding solution to an underserved part of the market is at the very heart of NatWest Markets purpose-led strategy.”
Glenhawk was advised on legals by Ashurst and NatWest Markets was advised by Allen & Overy.
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