Exclusive: Relendex debuts total property development loans
Property lender Relendex has launched a new lending product which will provide 100 per cent of the funding required to complete a development.
These subordinate participation loans are designed to replace the borrower’s equity contributions.
The loans are only available to members of Relendex’s select portfolio. These are small- and medium-sized enterprise (SME) developers “with whom Relendex has developed close relationships and who Relendex believe have considerable potential to grow and thereby build the homes the UK desperately needs,” a company spokesperson said.
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Subordinated participating loans are only available when Relendex is providing the senior debt. This keeps relationships to a minimum, avoids complications and conflicts of interest, the spokesperson added.
‘’Now our developers can concentrate on building homes without wasting time and expense in raising risk capital, and hopefully Relendex’s platform lenders will have a very rewarding additional product to add to their portfolios’,” added Paul Sonabend, executive chairman at Relendex.
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The platform said that its long experience of matching sophisticated investors to high-quality SME housebuilders means that it is now able to offer a “one-stop shop” to borrowers by providing up to 100 per cent of the financing required to complete a development.
“Our investors have a strong appetite to invest in the higher risk/higher rewards offered by profiting from a developer’s success,” added the spokesperson.
“At the same time developers find it extremely hard to source equity type investment capital which is a constant source of frustration and restrains their growth potential.”
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