Reim Capital closes £ 13million loan for Manchester residential development
Reim Capital has finalized a £ 13million development facility, its biggest loan since inception.
The deal means the London-based lender hit 50% of its annual target in the first quarter of this year.
The borrower, Investar, will use the financing to deliver 115 new homes in Manchester to help close the gap in the current UK housing shortage.
The program, which has a GDV of £ 19million, runs for 18 months, with the sale being the exit plan.
The case was brought by broker Sophell, who worked closely with Investar and Reim Capital.
Kunal Vaitha, Director and Co-Founder of Reim Capital, said: “We are very happy to be working with a new developer and to close our first loan in the North West of England.
“One of our annual KPIs at the start of the year was diversify our book into new regions, and it did just that.
Michael Dong, CEO of Investar, added: “We are very pleased to have finalized our first development loan with Reim Capital.
“Working with the Reim Capital team has been a real pleasure, and we look forward to working with them on many more.”
Russell Jowett, partner at Sophell, said he enjoys working with all parties and getting “a great result for everyone involved”.
During its first year of activity, Reim Capital – which is financed by a joint venture with a real estate debt fund – completed £ 25million in loans and plans to double its loan portfolio in 2021 by strengthening its brokerage distribution and expanding its team.
In September, the lender granted its second largest development loan, complex £ 7million deal for commercial property conversion in Westminster.
The finance provider offers a range of products, including residential, semi-commercial and commercial bridging finance, auctions and development finance.