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Development finance
Lenders trying to capture high-yielding opportunities should consider the lack of debt available to buy land for Spain’s residential comeback.
The Northern Irish government has launched a £100 million (€111 million) fund to address the shortage of development finance.
An uptick in liquidity of development finance in the UK looks likely to fall far short of demand, as lenders remain cautious when it comes to construction schemes.
US investor Kennedy Wilson and its equity partner Fairfax have sourced a €45 million debt package to refinance the existing development loan on the second phase of the Clancy Quay residential scheme in Dublin.
Real estate investor and lender Cain Hoy has provided a £290 million construction loan to Lodha UK to fund the development of the Lincoln Square residential scheme in central London.
Ingenious, the London-based investment firm, has announced the hire of Tom Brown as its new head of real estate lending.
M&G Investments is planning to raise follow on capital for its European senior and junior debt strategies and is considering a development finance fund, after investing £2.2 billion in CRE debt in 2015, Real Estate Capital can reveal.
After a pause around the time of the general election in May, finance requests have come back strongly in recent months according to the latest Laxfield UK CRE Debt Barometer.
Legal & General Property is expanding the debt facilities for two of its existing funds and looking for debt for a third vehicle, to raise £260m for further acquisitions, asset management and to cut borrowing costs, Real Estate Capital can reveal.
Lloyds Bank Commercial Banking and Investec Structured Property Finance have provided a £190m development facility to Cain Hoy and Sager Group for their £400m Islington Square joint venture in London.
Investec has also taken a minority equity stake in the project. It provided an initial refinancing loan for the scheme which has now been rolled into the development facility with Lloyds.