Santander has slightly raised its target for new lending in 2011 to £1.2bn-£1.5bn. Last year the bank was one of the UK’s top lenders, writing £1bn-£1.2bn of loans. It will lend up to about £65m on its own.
The bank has closed around six deals since November. Its latest is providing senior debt and a capital expenditure facility for Wainbridge Capital’s £24.5m purchase of three West End offices on Chenies Street, which it will refurbish at a cost of £4.5m.
Last month Santander loaned Aerium Properties £27m for its £83m purchase of 1 Glass Wharf in Temple Quay, Bristol, from administrator Pricewaterhouse-Coopers Deutsche Hypo was the lead underwriter. The banks lent £54m for five years at a margin thought to be above 200bps.
Santander had a relationship with the borrower through its financing of One Wood Street last July, and stepped in after DG Hyp pulled out. The margin jumped by 30bps at this point. Lloyds funded Castlemore’s construction of 1 Glass Wharf and has taken a large writedown.