We’ve confirmed the senior-secured facility with London-based asset manager and private equity firm Pollen Street Capital.
This facility will strengthen our ability to reach projected growth targets in the development finance market.
It’s the latest of several strategic moves we’ve made in the past year to ready ourselves for more growth – including the expansion of several directors’ roles and the introduction of new associate directors.
Becky Harris, MSP’s Director of Strategic Finance and Operations, said: “This facility is all about providing more flexibility and diversity of funding for us and our clients.
“It comes at a time when we are seeing more and more developers approach us for development finance.
“From the get go, the people at Pollen Street were so engaged with not only our business and lending strategy, but who we are as a team and company. We look forward to a long and successful partnership with Pollen Street.”
Adam Tovey, MSP Capital’s Director of Risk and Underwriting, said: “This is a pivotal time for specialist lenders such as us.
“More borrowers are seeking alternative sources of development and bridging finance amid a steady retreat from mainstream, high-street lending due to challenges in sections of the property market, especially buy-to-let.
“As a long-established fixed-rate lender backed by institutional investors and other investment partners, we offer certainty and confidence at a time when base rates have been increasing.
“It’s fantastic that we have been able to secure up to £100 million in funding from Pollen Street Capital.
“This will further solidify our certainty of lending and ability to empower clients to continue building homes in England and Wales.”
Michael Katramados, Partner at Pollen Street, said: “MSP Capital has a fantastic track record, with over 40 years’ experience in property finance and deep knowledge of their local markets, representing a great fit for our senior secured credit strategy.
“Pollen Street has extensive experience in funding bridging and development lenders, helping them to support developers across the UK. I’m delighted that we can help to deliver more funding to be used for the construction of energy efficient, affordable homes around the country through this new partnership with MSP Capital.”
The transaction was supported by the EY FS Corporate Finance team who were appointed as sole financial adviser for MSP Capital.
Becky Harris added: “The team at EY have been integral in the completion of this deal and we would like to thank Stuart Mogg, Partner at EY and Olivia Dunning, Executive at EY for their expertise throughout the process.”
Travers Smith acted as legal counsel to MSP Capital, with Ashurst acting for Pollen Street.
