CapitalRise reveals that it recently passed the £300m lending milestone, against £830m of prime property assets.
To sustainably maintain this growth in their loan book, they claim to “have robust monitoring processes in place.” Their own project managers reportedly work “with independent third-party professionals, such as Kirsty Kimber from Colliers, who they caught up with on a recent site visit to discuss project monitoring in more detail.”
As noted in a blog post, many CapitalRise loans provide finance “for the construction or redevelopment of a property.”
On these loans, the borrower typically “receives a portion of the loan at the beginning and then more is provided throughout the project.”
As explained in the update, each month, “an independent Project Monitor Surveyor (PMS), appointed by CapitalRise, visits the development site to verify and report exactly what work has been completed and the associated costs.”
As mentioned in a blog post by CapitalRise, only once this report has been received can the borrower “request a construction finance drawdown to cover the costs incurred during that period.”
The firm added that one of the key ways that CapitalRise is different to many other lenders is that dedicated members of their own team physically “visit each site every month, alongside the trusted third-party PMS.”
With their experience of prime property development, CapitalRise’s project monitoring processes “provide assurance to investors – and add value for borrowers.”
During one of their recent monthly site visits, they caught up with one of their PMS advisors, Kirsty Kimber, from Colliers to discuss all things project monitoring.
Academy Gardens, Kensington against which CapitalRise lent £8.36m
CapitalRise joined Kirsty on site at Academy Gardens in Kensington, where CapitalRise has funded “an £8.36m loan for the acquisition and refurbishment of a luxury apartment.”
The visit was to ensure the project “continues to run smoothly, which she does, for example, by reviewing and certifying the works completed and confirming appropriate documentation is in place.”
Kirsty visits the site at least once a month “alongside a CapitalRise portfolio manager.”
Sometimes, if agreed by all parties, they “will visit every two or three weeks at critical stages.”
Kirsty believes that, by “having a greater understanding of the role of a PMS and the items that they report against, it can help lenders to make better-informed decisions and help manage the project risk.”
Kirsty adds that it is crucial to “maintain a good relationship with borrowers.”
This is because if the relationship “breaks down or becomes fractious, then it becomes difficult to obtain information on the project, which overall makes reporting on all elements of the development difficult.”
The process of stringent loan monitoring “provides certainty to investors, allows them to maintain close relations with the borrower and their project, and ensures that the development is performing as expected to the benefit of all parties.”
She says she enjoys working with CapitalRise as the firm “is a good funder and has clear communication lines. In particular, Academy Gardens is an excellent scheme; the borrower is very passionate and knows all the details of the project inside-out.”
The design and quality of the work are of “a very high standard, and the property has many unique period architectural features.”
As a specialist lender with a focus on prime residential real estate, the majority of CapitalRise’s loan book is “in Prime Central London.”
But their loan book also “includes Prime Outer London and Prime Home Counties addresses.”
By lending against some of the finest residential properties in the best postcodes, and working alongside experienced partners such as their PMS teams, they have been “able to keep their door wide open to new opportunities and rapidly grow their loan book.”
