UK-based property finance platform LendInvest Mortgages has launched a new long-term funding partnership with AB CarVal and HSBC to scale its development finance proposition.
The agreement comprises £175m of senior capital committed by HSBC, supported by funds managed by AB CarVal and LendInvest, through which it will be able to support a larger number of SME developers and a broader range of project types.
LendInvest’s development finance platform has already financed more than 700 projects.
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The new funding supports the next phase of LendInvest’s growth and is targeted at the smaller end of the market, typically offering development loans of between £1m and £5m, where “traditional lenders often lack appetite and alternative lenders struggle to scale”.
AB CarVal specialises in private credit and asset-based finance, including residential development finance, and will enable the structure to be executed at speed despite market volatility, LendInvest said.
The funding operates for LendInvest as a separate account.
“AB CarVal brings deep expertise and significant firepower; HSBC brings the institutional strength and continuity that has underpinned our success to date,” said Hugo Davies, chief capital officer and managing director of mortgages at LendInvest (pictured).
“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.”
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“LendInvest continue to demonstrate their ability to originate and manage a strong portfolio of development loans within the UK market,” Victoria Lindsell, HSBC’s global head of structured finance, added.
“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.”
According to Robert Sinclair, managing director at AB CarVal, the structure “creates a compelling opportunity to scale and enhance our existing track record of investment into segments of the UK housing market where demand continues to outpace supply”.
