Investec SPF achieves record H1

Michael Lloyd

August 1, 2018

Investec Structured Property Finance has reported a record first half of the year, committing over £450m of senior development and investment lending during H1.

It arranged a £72m facility, totalling a £43m commitment from Investec and £29m of debt from the Israeli Bank HaPaolim, to fund a 140,000 sq ft PRS and co-working King’s Cross scheme.

Gary Dobson, head of Investec Structured Property Finance, 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.

“Coming up to 10 years on from the Global Financial Crisis, whilst the lending landscape has changed immeasurably with a wave of new entrants, we continue to benefit from the strength of the relationships that we have built up during nearly 20 years of real estate financing.”

Simon Brooks, loans origination at Investec Structured Property Finance, added: “The significant experience and market knowledge across the team has allowed us to remain an active provider of both investment and development finance during the first half of the year, achieving record volumes and lending against a number of flagship schemes.

“Reflecting our growing capabilities, the period has seen us support our clients with a number of large facilities whilst further leveraging our institutional relationships to bring additional third-party debt.

“The majority of our committed funding during the period has been to longstanding clients, who are able to benefit from our increasingly broad offering and the teams deep rooted knowledge of the property market.”

“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.

“Whilst 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.”

It raised £195m for Cain International led consortium redeveloping The Stage, as part of £390m club loan. Investec committed £97.5m from its own balance sheet and a further £97.5m from Harel Insurance Group.

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