UK’s prime property finance company CapitalRise is reporting £250m bank funding line, as part of its approach to diversify and boost the resilience of its capital sources and facilitate lending growth.
This funding line is the fifth and reportedly the largest secured by the company so far.
In addition to variable pricing options, this funding line should help CapitalRise with providing fixed pricing for UK limited company borrowers, offering its clients with more cost certainty against the backdrop of interest rate fluctuations. As noted in the update, more will be announced by the company in the months ahead, on this new offering.
After its inception back in 2016, CapitalRise says it funded property developments across Prime Central London, Prime Outer London and the Prime Home Counties to the value of £859 million.
The prime property market is well-known for its resilience when compared to the broader property market.
CapitalRise has reported steady demand for funding from borrowers and its loan book has grown as well.
By strengthening its funding lines, the company says it may respond to this demand and serve borrowers in these areas of the UK property market with its lending solutions.
Uma Rajah, CEO and Co-Founder of CapitalRise, said:
“A diverse range of funding lines support the growth of the business and provide us with a resilient and varied capital base. Securing a facility of this scale and nature is a great new addition to our existing partnerships. It is a testament to our depth of expertise and strong track record in this specialist area of the real estate market. We continue to grow the team too, bringing new talent into nearly every department of the business. Combining this new funding line with increased capacity within the team enables us to turbo-charge our growth and serve increasing numbers of borrowers.”
Lee Francis, Head of Origination at CapitalRise, said the new funding would enable the company to respond to the demand and will help them “keep our door wide open to new inquiries at a time when many other lenders are retrenching from the market.
Associate Director of Capital Markets at CapitalRise, Pip Lashko-Sayers, shared that the markets they are focused on, Prime Central and Outer Londong and the Prime Home Counties, are bucking the trends seen in the broader UK market.
“There remains a vast range of attractive investment opportunities in our target markets that we are keen to support, particularly with enhanced tools and resources at our disposal.”