Investec Structured Property Finance committed to lend more than £450m in senior development and investment during the first six months of 2018.
The record sum has gone towards commercial and residential real estate schemes, primarily in London and the South East.
These included a £72m facility, combining a £43m commitment from Investec and £29m of debt from Israeli bank HaPaolim to fund LabTech Group’s 140,000 sq ft PRS and co-working scheme in King’s Cross. https://www.egi.co.uk/news/sagi-secures-72m-loan-for-kings-cross-scheme/
It also raised £195m for a consortium led by Cain International that is redeveloping the Stage, as part of £390m club loan. Investec committed £97.5m from its own balance sheet alongside a further £97.5m from Harel Insurance Group. https://www.egi.co.uk/news/cain-international-secures-development-loan-for-the-stage/
Investec said it had ramped up its focus on major development schemes and increased its loan book exposure to investment financing during H1.
It also noted that demand continues for owner-occupier and PRS schemes, as well as appetite for prime residential in the South East and travel zones 2-6 in London.
Gary Dobson, head of Investec’s structured property finance operations, 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.”
Simon Brooks, loans origination specialist at Investec, added: “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.
“While favourable 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.”
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