Investec Real Estate, a leading provider of residential and commercial finance to corporate, institutional and private clients, announces that its private client lending team has provided of over £225 million of finance, across 25 loans, since 1 April 2021. It takes the total committed loan facilities past £1 billion.  The strong performance, which alongside the corporate team keeps Investec on track to meet its £750 million full year lending target, demonstrates a bounce back from the pandemic and the ongoing demand from UK real estate borrowers for flexible financing solutions from experienced lenders.

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Investec’s private client team has lent against a variety of both commercial and residential real estate schemes, primarily in London and the South East, across both investment and development deals.

Highlights include:

  • Strong pipeline: Investec’s private client team has already provided more finance in H1 than the whole of 2020/21, as the impact of Covid-19 lessens and government restrictions are lifted. The pipeline in the final stage of the legal process will double last year’s lending volumes, with two thirds in residential development opportunities, both build to sell and rent.
  • A focus on development finance: Leveraging the team’s growing reach and reputation in the market, Investec is increasingly working on larger schemes. Notable loans include:
    • A Central London hotel with significant redevelopment opportunity
    • An 80,050 sq ft M25 office building with permitted development rights potential for residential, the fourth transaction in the last 12 months with the client
    • A UK medical portfolio comprising 35 assets for a consortium of South African clients, supporting them with their investment ambitions to expand their existing portfolio
    • A £40 million acquisition and refurbishment loan on a Prime Central London mansion block
  • Increasingly high quality projects and clients: The average loan size is £10 million, up from £6 million last year, as the team looks at larger asset sizes in the private client space. The largest loan so far has been £40 million, within the team’s target range of £5-50 million.

William Scoular, Head of Real Estate’s Private Client team, said: “The success of the vaccine roll out and reduced government restrictions have played a big role in the real estate market bounce back, which is reflected in our very pleasing start to this financial year. At the same time, mirroring the strength of the residential sector, we are growing our development exposure to this part of the market, taking advantage of demand from both domestic and international borrowers and the reluctance of more risk averse lenders to support the delivery of new product.

“The strength of the Investec offering has allowed us maintain our position as funder of choice to a diverse mix of borrowers. What has been most encouraging is that we have been able to utilise our team’s experience and track record, having lent through multiple cycles and downturns for over 20 years, to deliver flexible solutions to our clients during a period of significant uncertainty.”

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