Aldermore, the specialist bank has surpassed £1bn in property development loans following a surge in demand from SME developers and house builders who are looking to borrow through tailored financing facilities.
To meet the increased appetite for property development loans, the bank has grown its headcount by a third with most recent appointments in Scotland and Leeds. This coupled with increasing its maximum loan size (“hold levels”) last year has contributed to the success of assisting new and existing customers who required larger facilities.
These developments have also allowed SME developers, such as Alexander James Cox Ltd, to secure the right funding to help them meet the growing demand for new homes across the UK.
A recent contributing factor to achieving this milestone saw Aldermore lend its largest ever development finance deal to date; providing a £22.9m facility to Queensberry Properties Ltd which saw the company acquire a 7.5 acre mixed used site within the “New Waverley” project in the heart of Edinburgh.
John Carter, commercial director within the Commercial Real Estate team at Aldermore, comments: “The need to invest in building new homes to meet rising demand is a must and plays heavily in the bank’s strategy to further increase its support for UK housebuilders in 2019. It is crucial that companies seeking to increase the number of properties available are supported at every stage and that is why have consistently maintained and expanded our development finance offering since 2012. Our personalised approach enables us to provide tailored support to our customers and this milestone demonstrates the success of our approach in financing sustainable long-term developments across the UK on a consistent basis.”
With a wide breadth of funding opportunities available, Aldermore has supported the redevelopment of specialist properties, new build residential, office, retail, industrial and purpose-built student accommodation. It is currently financing over 150 developments across the whole of the UK, which will deliver over 2,000 new homes.