CapitalRise secures new £72m institutional funding line to increase lending firepower
CapitalRise, the specialist lender for prime residential developers, has secured a £72m 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 £450m 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 £120m 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.