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Finance Spotlight: Landmark Estates

10 December, 2020

Landmark have been undertaking residential & commercial developments since 1999 and have an extensive and varied portfolio of completed projects.

 

We funded our first project for Landmark in 2018 which was quickly followed by a number of other schemes thanks to our ability to turnaround funding swiftly. Spending two years working closely with their team we understand their key drivers and this has enabled Landmark, with our support, to establish a strong development programme in various locations across the South with more opportunities expected in 2021.

 

If you have frequented the Co-Op stores in Truro, Penzance and Milborne Port you will see that Landmark have created a niche completing the stores either on a standalone basis, or as part of a wider residential scheme, their latest at Lymington, being in the closing stages now.

 

 

With high street lenders becoming reluctant to provide funding for commercial new build projects such as these, MSP Capital’s finance provided the final piece of the jigsaw.

 

James Bradley, Managing Director at Landmark Estates said:

We’ve been delighted with the support and flexibility provided by Adam Tovey and the team at MSP Capital. They’ve taken the time to understand our business, and in particular the relationship we’ve cultivated with the Co-Op team locally, which has enabled us to benefit from much needed funding lines for these projects, that in turn has allowed us to maximise and strengthen our relationship with the Co-Op.

Five Positive Updates from MSP in 2020

10 December, 2020

No one could have predicted how 2020 would have changed us and every business we work alongside in 2020. The ramifications of Covid-19 have been felt globally, and although they’ve presented challenge after challenge for MSP internally and with our clients, what has emerged is a stronger business offering than before. We’d like to share these aspects with you …

 

New Premium Product Launch

Our new Premium product has been extremely well received by brokers and customers alike.

Take-up of the first tranche of £30m in August was so quick that we were able to offer a further tranche of £50m in October. Despite what’s been happening with Covid we find it inspirational to see how our customers are adapting and managing to create opportunities amidst a turbulent year. A third tranche is currently on offer, and we have plans for a fourth allocation in the New Year.

 

Record Level of Business

It’s been a challenging year for every business but the property market has shown itself to be tremendously resilient in 2020 with activity levels and values surprising many post the initial lockdown. This is purely down to the entrepreneurial spirit of both our clients and our MSP team to find new ways to adapt and conquer amidst the constant uncertainty and changing landscapes.

 

As a result, we’ve seen record activity levels since July which has seen our Loan book continue to grow. Since the first lockdown ended we have had 125 offers of finance accepted in 4 months, leading to 75 new loans drawn down so far totalling over £50m and our Loan Book has grown by 10%.

 

Growing our team of experts

In a year where the world has been beset with challenges MSP is continuing to look to the future with a positive recruitment policy that will enable the company to meet its aspirations of becoming the lender of choice for property finance solutions. We know that our clients enjoy the personal service that we offer at all times during a project and whilst we want to grow, we want to protect the MSP experience and be well resourced to meet the continuing demand of both existing and new clients.

 

In addition to Richard Rowney’s appointment as Non-Executive Director we have had four new joiners in the past year that have strengthened all departments within the company. Each bring skills and qualities that are at the core of the MSP ethos of providing a high quality, fast and flexible service to our clients.

 

 

Ellie Fitzpatrick is a qualified AAT accountant and ACCA affiliated. Previously with a top 10 accountancy firm, Ellie now supplements the well established but growing finance team and in addition to specific project work is responsible for preparing the monthly management accounts.

 

Lucy Mines joins MSP as our Sales Relationship Manager. Having worked at management level of both local and national size firms in the South West, she brings over 20 years previous experience and knowledge in negotiating sales, compiling market appraisals and marketing strategies, creating marketing brochures and has good knowledge of the conveyancing process, in order to help bring sales to completion.

 

Lucy Green joined MSP Capital in November 2020 after graduating from Oxford Brookes University with a First-class Economics Degree. She assists the compliance team in conducting KYC procedures as well as undertaking projects aiding process improvements in order to support MSP’s continued growth.

 

Louise Thomas has over 30 years’ experience in assisting with the administration of commercial and residential property matters. She will assist our Valuation Team with confirming valuation instructions, preparing reports, as well as assisting the Valuation Surveyors with essential day-to-day matters.

 

Security with ease and speed

Working virtually during lockdown was the perfect time to update our customer onboarding processes. We’ve successfully embedded DocuSign, which enables customers to sign an Offer of Finance electronically from any device and HooYu, MSP’s online electronic verification partner which enables our borrowers to provide proof of ID and address from a computer or phone. As we prioritise speed and ease for our clients, both of these updates have been well received.

 

AFC Bournemouth ‘Striving to Make Anything Possible’ Sponsorship

We were thrilled in September to become principal partner and see our company ethos emblazoned on the team’s shirts of AFC Bournemouth for the current season. Getting involved with our local community is important to us and this synergy represents a strengthening of our long standing relationship with the club and is especially exciting for a number of lifelong Cherries fans in the MSP Capital team.

This partnership is the perfect opportunity to extend our reach and the MSP experience to a wider audience.

 

AFC Bournemouth

 

 

 

Rishi Sunak’s Spending Review and what it means moving forwards

10 December, 2020

Following Rishi Sunak’s recent Spending Review announcement, which took place on the 25th November 2020, we at MSP Capital are certainly keen to see how the Government’s spending proposals will impact and hopefully benefit the small and medium-sized property developer. MSP Capital have a vested interest as small and medium-sized developers are our core client-base when it comes to providing development finance.

 

In outlining the Government’s spending plans for the coming year, the Chancellor noted that the Review’s first priority was getting the country through coronavirus, its second was stronger public services, with its final priority to deliver ‘record investment plans in infrastructure’. He announced that, to build housing, the Government was introducing a £7.1bn National Home Building Fund, on top of its £12.2bn Affordable Homes Programme. Mr Sunak also announced a new fund, a Levelling Up’ fund worth up to £4 billion which any local area will be able to bid directly to fund local projects.

 

Switching plans and getting involved instead with local projects coming to life

Mr Sunak’s Levelling Up fund provides opportunities for each area of the UK. He mentions earlier in his speech the Government’s determination to regenerate people’s pride in their towns and cities to the point where locals say: ‘yes: our community – this place – is better off than it was five years ago.’

 

His commitment to focus local developers on their communities and making giving funds available for them to do so, will provide definite opportunities for developers who are flexible to change and happy to develop different aspects of building.

 

Outlining it simply, he stated that these projects must have real impact, be delivered within this Parliament and they must command local support, including from their Member of Parliament.

 

Leaning on their opportunistic approach and that of countless other clients, we know that if you can take the skills and vision that you have and use them to create opportunities that are relevant with the community and in-line with government provisions you can move forward in a strong manner in 2021. Even if the entire amount isn’t funded by the Government, it’s highly likely that we can assist with topping up the development finance aspect or co-ordinating an essential bridging loan where needed.

 

Looking at his statement overall, what do these changes mean to SME property developers?

 

It will remain to be seen whether this latest round of spending announcements will directly impact the small and medium-sized developer.

 

As has been the case for as long as I can remember anyway, there has always been the age-long issue of supply and demand. Indeed, it was noted by the Chancellor that at the moment, traditional house builders do not have the capacity to deliver on the 300,000 new homes a year target, which is therefore going to further exacerbate the ongoing problem.

 

This constant imbalance in UK housebuilding is though something the Chancellor is hoping his spending plans will help resolve by encouraging more Investors, Developers, Councils, and Housing Associations to deliver upon the much needed additional housing stock. Where we remain a little skeptical, is that I’m sure we’ve heard it all before. Over past years any Government-led spending plans have always seemed to be weighted more toward the UK’s biggest house builders, as opposed to offering any real benefit to SME property developers who also play a vital part in helping deliver the housing targets.

On a more positive note, we are confident that these changes will bring some much needed positivity to the property market as we head into 2021.

 

MSP Capital will certainly continue to have an appetite to provide the required funding directly to the SME property developer to help achieve these targets.

 

As a slight aside, ever since the recession in 2008, our team at MSP Capital have witnessed dramatic changes in the property lending market, with the traditional high-street Banks adjusting their appetite to risk, through lowering their LTV lending parameters for just one example. Indeed, we have seen over time this traditional route of funding retrenching from the market in providing the much needed development finance to those smaller and first-time developers. This has though led to the rise of the alternative lending industry who have helped plug the gap, and indeed who now offer a vital line of funding to our UK SME property developers, and will continue to do so.

 

During 2020 especially, we have seen our role as capital lenders as providing solutions through finance to see projects be completed and new visions to come to life. In effect we see our role as essential to help keep Britain building. The relief and renewed drive to persevere has been tangible with clients over the past few months and it’s incredible to be in a strong position to lend with assurance.

 

If you are one of these SME property developers exploring your current property development finance options, please do give MSP Capital’s experienced Business Relationship team a call.