OakNorth Bank has acquired 50% of lender ASK Partners’ shares, in a bid to expand its funding solution offering to UK housebuilders.
The move is part of OakNorth’s ambition to become the go-to platform for private investment in alternative real estate debt.
As part of OakNorth, ASK will continue to provide holistic funding solutions to customers, using senior bank funding along with other sources of risk capital. Since its launch in 2016, ASK has completed more than £1bn of real estate lending across all sectors and throughout the UK.
Ben Barbanel, head of debt finance at OakNorth Bank who will be joining ASK’s board, said: “The UK needs to develop 300,000 new homes each year to deal with the housing gap, but during an economic downturn most lenders tend to retrench from the small and medium enterprises lending market.
“This transaction therefore comes at a vital time for the British economy, as it will enable us to deepen our support for SME housebuilders and property entrepreneurs across the UK and through the economic cycle.”
The acquisition was approved by the PRA and the FCA, which regulate OakNorth Bank and ASK respectively. ASK will continue to operate as a fully independent company.
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