HSBC will provide up to £100 million in funding for LendInvest’s development finance programme, as announced on 19 December 2022
LendInvest, the UK’s leading asset manager for property finance, announces a partnership with the British Business Bank to help finance smaller property developers provide more homes across the UK.
As senior funder, HSBC will provide up to £100 million, with the British Business Bank supporting the transaction via its government-backed ENABLE Guarantee programme.
LendInvest’s development finance scheme supports smaller property developers across the UK, helping to plug the gap in the delivery of homes and alleviate the undersupply of houses.
The ENABLE Guarantee programme is designed to encourage lenders to increase their advances to smaller businesses. Under an ENABLE Guarantee, the UK Government takes on a portion of the risk on a portfolio of loans to smaller businesses, in return for a fee.
LendInvest has more than £3.6 billion of funds under management, providing investors with opportunities to gain exposure to the UK property finance market.
LendInvest Chief Executive Officer Rod Lockhart said: “It is well known that there is an undersupply of housing in the UK and so we are delighted to partner with the British Business Bank and HSBC to unlock finance to help tackle this issue.
“The UK is a nation of homeowners without enough homes to own. Smaller property developers have a key role to play in making up this shortfall. The guarantee from the British Business Bank and the funding from HSBC, combined with our expertise in lending, is key to supporting these developers.”
Reinald de Monchy, Managing Director, Guarantee and Wholesale Solutions, British Business Bank, said: “Unlocking finance through this facility is a great example of the difference the ENABLE Guarantee programme can make in the market. Thanks to this new partnership, LendInvest will be able to help more smaller property developers build more homes across the UK.”
Source: Company Press Release