Reditum – a new property lender on the block
Specialist lender Reditum Lending – a subsidiary of Reditum Capital – has entered the UK market to help those looking for short-term finance to supercharge commercial and residential property projects.
London-based Reditum Lending will provide bridging loans from £500,000 to property professionals and developers via its 80-strong broker network, which includes Vibe Finance and DRM Capital. Big ticket loans will be considered on a deal-by-deal basis. Reditum is looking to deploy a minimum of £80m in its first 12 months of trading. Rates will start from 0.67%, with a maximum loan to value (LTV) of 80% and terms between six and 24 months.
The new business is a division of Reditum Capital, a boutique financier that was established in 2013 to fund complex property and land transactions across the UK and Europe. The firm has a strong track record in funding commercial, residential and land transactions, having closed over 100 transactions, worth in excess of £520m.
Previous bridging transactions include:
- £5m bridge loan against a prime residential property in London (Sloane Street) bridging the gap between expiry of existing debt and securing a long-term debt from a private bank
- £1m bridge on vacant land in Frimley Green, Surrey to construct 10 contemporary residential properties
- A £10.1m six-month term loan on a vacant site with planning in Newcastle, with supporting second charge security on a partially built residential tower completed in 10 days
- £10.1m 6 month loan on a vacant site with planning in Newcastle with supporting second charge security on a partially built residential tower completed in 10 days
The lending division will be led by Mark Stephen, managing director at Reditum Capital, and will be supported by the 18-strong Reditum Capital team.
Mark Stephen, founder at Reditum Capital and managing director of Reditum Lending, said: “This is a strategic move for the wider group as we look to increase our facilities to property professionals and landlords across the whole of the UK. With Reditum Lending, we’re aiming to take bridging back to basics and will be utilising our existing relationships, as well as partnering with new financial intermediaries to find quick finance solutions for their clients.
“Now is an important time for UK real estate. We have seen increased activity from property professionals to restructure or add to their portfolios, which is driving demand for short term financing. We are property people at heart, not just banking. Therefore, we understand the challenges of real estate and can take a view of things that other tick box lenders may not. We have invested significantly in our tech platforms to enhance the overall experience, and we’ll provide access to senior decision makers to get deals over the line.”