Property finance platform LendInvest has launched a new long-term development finance funding partnership with AB CarVal and HSBC, designed to accelerate the delivery of new homes.
The funding launches with £175 million of senior capital committed by HSBC, supported by funds managed by AB CarVal and LendInvest.
The deal evolves LendInvest’s existing institutional development finance funding into a larger, more flexible vehicle capable of supporting a greater number of SME developers and a broader range of project types.
Designed to scale as growth in the residential development market kickstarts
LendInvest’s development finance platform has already financed more than 700 projects, supporting hundreds of jobs, directly supporting SME housebuilders who often struggle to access fast and flexible institutional-quality finance.
The new funding significantly extends the capacity to support this segment, providing a sustainable, long-term capital base for the next phase of growth.
It is targeted at the smaller end of the market: development loans typically between £1m and £5m, where traditional lenders often lack appetite and alternative lenders struggle to scale.
Lending Momentum
A statement from LendInvest says the funding helps to create a clear pathway for increased deal flow across development finance – critical if the country is to hit the 1.5 million new homes the government promised in this Parliament.
“With a robust pipeline and an increasingly supportive funding environment, including greater clarity on funding costs and improved visibility on construction input prices, the business is well positioned to support SME housebuilders as they move forward with projects that had previously been constrained by fiscal and market conditions” it says.
The funding operates for LendInvest as a Separate Account.
Hugo Davies, Chief Capital Officer and Managing Director of Mortgages at LendInvest, comments: “This partnership is an important milestone for our development finance franchise.
‘AB CarVal brings deep expertise and significant firepower; HSBC brings the institutional strength and continuity that has underpinned our success to date. Both bring a deep history of supporting SME developers. Together, this creates a sustainable, long-term funding framework designed specifically for the SME developers who deliver the homes the UK urgently needs.”
Victoria Lindsell, Global Head of Structured Finance at HSBC adds: “LendInvest continue to demonstrate their ability to originate and manage a strong portfolio of development loans within the UK market.
HSBC are pleased to continue our partnership with LendInvest and to support them in the next phase of their ambitious growth plans alongside AB Carval.”
