The Montello Development Finance LP will focus on lending to London residential property developers.
The new fund, which has been seeded largely by existing Montello investors, builds on the 4-year track record that Montello has established in the short term lending market in the UK. The new fund will also add to the £50 million of funds under management for the firm.
Whilst Montello is principally a bridging finance lender, it does have clients that are involved in London residential development projects. This deal-flow has meant that Montello has sought to extend its offering to the market to now include development finance.
The new funding allows Montello to lend up to 65% of the gross development value of a project. The core focus will be on lending against London residential projects, whilst the funding does not dictate any other specific criteria.
Christian Faes, Managing Director of Montello, said: “Our development finance product provides us with a perfect supplement to our current bridging finance offering. Montello has established itself as a principal lender that is able to provide fast and flexible solutions. This flexible approach will now extend to development funding for residential projects in London.
“The focus of our development lending will still be on the short term lending side of the equation, but this new funding facility provides additional flexibility for our borrowers.”