UK debt brokerage Laxfield Capital has launched a small-ticket lending programme, targeting loans of £1 million to £30 million, with funding allocated by two global institutional investors.
Laxfield National will finance a variety of property types up to 70 percent loan-to-value. The platform will finance repositioning and operational assets, as well as income-producing property.
“We have been quietly testing this market for the past six months to determine the returns available and depth of demand for finance,” said Adam Slater, managing director of Laxfield Capital.
“Our data has been pointing for some time to increased activity in the smaller loans market, and there is demand for finance with risk/return appetite sitting between the clearing banks and debt funds. Since we started six months ago, we have twenty loans closed and under management, and there is a very strong pipeline of further deals in closing,” Slater added.
The loans to date have ranged from £1million to £13 million written to a mix of funds, private investors and property trusts. The loans have been secured by a range of properties including student accommodation, shops, a residential portfolio, offices in London and Wales and a hotel.
Former Royal Bank of Scotland director Bryan Hawkins has been hired to lead origination for Laxfield National. Hawkins joined RBS in 2003 and provided equity, mezzanine and senior debt funding for UK property developers and investors.
Sumeer Bose, previously at Nationwide Building Society, has joined the wider Laxfield team as an analyst to support the loan origination and debt advisory teams.