CapitalRise secures new institutional funding line
CapitalRise, a specialist lender for prime residential developers, has secured a GBP72 million institutional funding line from a major financial institution, further increasing the business’ lending capacity and offering within the specialist prime market.
This is another major milestone for CapitalRise and forms an integral part of the business’ growth plans. It provides more bandwidth to capitalise on the high volume of quality loan enquiries being generated by the origination team. To have attracted the attention of such a highly regarded institutional partner acts as a major validation of the quality of the lending proposition.
The new facility enables the continued acceleration of the company’s loan book growth. The value of assets CapitalRise has lent against has surpassed GBP450 million with zero capital losses. CapitalRise’s new institutional partner will fund loans alongside the company’s existing funding sources and facilitate its ability to underwrite additional loans.
Since the beginning of lockdown, when many lenders withdrew funding lines, CapitalRise saw a 90% increase in funding requests from borrowers. Despite the ongoing pandemic it has continued to confidently and conservatively serve the Prime market, and has funded assets worth more than GBP120 million since the start of this year.
Investor appetite has also increased significantly in 2020. This new funding line is a good example of the increase in demand from institutional investors looking to access UK Prime real estate debt as a very attractive asset class particularly in light of the COVID impact on other asset classes.
CapitalRise’s 2020 has been a record-breaking year of significant growth. The prime property development finance market has been serviced with agility and market-leading expertise during a year of uncertainty for many other lenders. They remain the only dedicated prime property finance provider for developments in Prime London and the South East.
CapitalRise CEO and Co-Founder, Uma Rajah, says: “We are thrilled to have secured this funding line, which we expect to enable us to serve more prime property developers. In the last 12 months alone we have received loan applications worth over £5.5 billion. This partnership gives us the ability to provide a broader offering and develop a stronger presence in the market. It has been a fantastic year for CapitalRise, and we are incredibly proud of our achievements. We are extremely excited about what we will be able to accomplish in 2021 with this additional funding capability.”
CapitalRise Lending Director, Lyndon Miles, says: “Another milestone in the CapitalRise journey. From humble beginnings we are now a recognised, “go-to” lender for the funding prime properties in prime locations in the UK. Our combined long experience of this niche asset class gives us a unique set of tools, enabling us to deliver leading funding solutions. It is a privilege to have the opportunity to work with a partner that has multi-jurisdictional experience, flexibility and a solution orientated approach.”