Titlestone’s enhanced product range for 2018
As we move into the New Year, CEO Robert Orr sets out how Titlestone sees the market and highlights some additions to its product range.
As we start the New Year, I wanted to bring you up to date with how Titlestone views the market and what we have been doing to support our developer clients.
Since Titlestone started business six years ago, we have drawn down on facilities of over £2.1bn across 330 projects. We are proud that over 80% of our business comes from a combination of existing clients and direct approaches.
Our success has, however, attracted new entrants into the stretched senior debt sector, particularly over the last couple of years. Whilst it remains to be seen whether some of these new entrants have overreached themselves, Titlestone has adapted by reducing its interest rates and extending its product range.
We now offer a wider range of development finance from 60% GDV to 70% GDV with rates from 7% fixed alongside competitive fees.
We are also able to offer our developer clients:
- Fixed interest rates with no breakage costs
- No early repayment fees
- No non utilisation fees
- No minimum interest periods
- Fast credit decisions
- A commercial approach to due diligence
Keeping it simple and delivering on what we promise is part of the Titlestone DNA.
As for the market, we are always mindful that we operate in a cyclical business. As such, two years ago we decided to focus on houses priced below £1.25m and apartments priced below £600,000. This, alongside the continued support of our backer Oaktree Capital ($100bn of assets under management), has given us a strong platform to support developers should opportunities arise in a more challenging market.
We have also been increasingly active in areas outside of London with, for example, over 1,000 housing units financed in the South West. We have ambitions to grow our regional presence further during 2018.
One product which has been particularly well received in the Regions is our Stretched Senior Facility for phased housing schemes. These revolving facilities allow smaller regional housebuilders to maximise equity resources and grow their pipeline of sites.
Titlestone remains an active supporter of office to residential schemes undertaken via Permitted Development Rights. Many of the easier projects have now been concluded since PDR was first introduced in 2013. That is why we are increasingly working with our clients on more difficult properties where value can be added through obtaining vacant possession before moving onto a development.
Whilst I am sure that 2018 will bring its fair share of challenges for all of us, Titlestone is in a strong position to support both existing and new clients.