Titlestone Property Finance, the residential development funder, is to expand into speculative commercial development funding.
The company, which is one of the leading providers of stretched senior debt in the UK, continues to fund residential schemes under permitted development rights and is expanding into office development within certain areas of London and the South East it believes is undersupplied.
Backed by Oaktree Capital as part of a $3bn European fund, Titlestone has funded over 190 developer clients to date, making up facilities in excess of £1.2bn.
It is now actively looking to fund experienced commercial developers on projects with a maximum loan size of £7.5m, within broadly a 10-mile radius of the M25.
Robert Orr, chief executive of Titlestone, said: “We are looking to fund projects up to a maximum of 55-60% of completed investment value and around 70-75% total costs. With many mainstream lenders unwilling to become involved in speculative commercial projects, developers have found access to funding difficult. We are hoping this new product, backed by our experienced relationship team, will help developers take advantage of the growing demand for new office space.”
Schemes will be mainly offices, but could also include industrial or warehousing. They will typically be new build or refurbishment projects up to 25,000 sq ft.