Atelier Capital Partners launches into short-term property finance market with M&G investment
Atelier Capital Partners has launched into the short-term lending and development finance market with finance provided by funds managed by M&G Investments.
Atelier Capital Partners, formed last year, is offering a range of short-term and development finance solutions of up to 24 months to professional small and medium-sized developers and property companies.
The focus will be primarily on schemes and assets on brownfield sites that support urban regeneration and the ‘upcycling’ of UK real estate assets.
The company has committed over GBP25 million of lending to date for land acquisition, light and heavy refurbishment, development, auction and more general commercial purposes. The lender initially offers short-term loans from GBP500,000 up to GBP10 million with retained, rolled and serviced interest options available.
Before the financial crisis, developers and property companies were almost entirely reliant on banks for financing. The short-term lending sector has changed significantly since then and is a rapidly maturing sector.
Atelier Capital Partners was founded by three experienced specialists within the UK and European property finance sector, Chris Gardner, Graham Emmett and Keith Aldridge.
M&G Investments is providing significant capital for the team to lend and has also provided equity to the business. The investment is being made on behalf of M&G’s pension fund and institutional clients.
Gardner, Chief Operating Officer, Atelier Capital Partners, says: “Short-term property finance is one of the most dynamic sectors in the UK and has gone from strength to strength during the past decade. 2020 is going to be an exciting year as we set out to establish ourselves as a trusted partner for intermediaries and property investors in search of institutional-grade specialist property finance.”
William Nicoll, Head of Institutional Fixed Income, M&G Investments, says: “As the backbone to the UK economy, access to short-term finance is essential for small and medium-sized developers and property management companies to invest in and regenerate sites across the country. Providing institutional capital for this sector on a short-term basis will provide the sector with greater stability and we also expect it to generate income for our pension fund and institutional investors.”