LND Capital secures £200m funding from UK bank to address CRE "funding gap"

LND Capital has formed a strategic lending partnership with a UK-based global bank, through which it has secured an initial £200m funding line to help provide financing solutions to the “underserved” UK commercial real estate market.

The partnership will provide LND with additional funding to support its “substantial” loan pipeline, after the lending platform experienced a “surge” in loan applications to more than £1bn in the last quarter.

Earlier this year, the company closed a funding arrangement with a UK-based challenger bank.

LND aims to address what it calls “the critical funding gap” in the UK’s small and mid-market commercial property sector by providing flexible capital for property acquisitions, refinancing and asset upgrades, throughout the UK.

In recent months, it has completed around £60m in loans, with a further £50m due to complete shortly, and expects to exceed £200m in total lending by early next year.

“This agreement reflects our confidence in the commercial real estate sector, despite prevailing headwinds such as high interest rates, inflation, and economic uncertainty,” said Aisling McCarthy, managing director at LND Capital.

“We believe that rigorous asset selection, prudent underwriting, and conservative lending will ensure CRE debt remains a resilient and attractive asset class.”

According to Richard Lang, chief operating officer and chief financial officer at LND, there is growing interest from investors seeking secure, scalable platforms for capital deployment.

“We’re excited to welcome a global financial institution to our lending platform,” added Nicolas Vocos, chief executive of LND Capital (pictured).

“This transaction reinforces our commitment to the underserved UK commercial property sector, and consolidates the progress we’ve made in deploying capital and building long-term partnerships with respected institutions.”