Property finance specialist MSP Capital has agreed a £100m development funding facility with a single investment partner.
The Dorset company has confirmed the senior-secured facility with London-based asset manager and private equity firm Pollen Street Capital.
Poole-based MSP said the facility was designed to strengthen its ability to reach projected growth targets in the development finance market.
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MSP said the deal was part of a growth strategy which has seen the expansion of several directors’ roles and the introduction of new associate directors.
Becky Harris, director of strategic finance and operations at MSP Capital, 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.”
Adam Tovey, MSP Capital’s director of risk and underwriting, added: “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 £100m 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.”
Founded in 2013, Pollen Street is an independent, alternative investment management company headquartered in London, and with offices in the US.
The transaction between the two companies was supported by the EY FS Corporate Finance team who were appointed as sole financial adviser for MSP Capital.
Travers Smith acted as legal counsel to MSP Capital, with Ashurst acting for Pollen Street.
MSP is a principal bridging and development lender, offering funding solutions to property professionals of up to £20m.
It has reported a 30% increase in its loan book this year as well as around 40% increase in headcount.
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