Dragonfly lands loanbook via Maslow merger deal

Real estate mezzanine, bridging finance and buy-to-let specialists Dragonfly Property Finance and Maslow Capital have merged. Dragonfly has acquired Maslow’s book of around 12 mezzanine loans, which was owned by a fund backed by its four partners and a group of wealthy private investors.

But mezzanine and development loans will still be made under the Maslow Capital name. Maslow was set up three years ago by a former Investec team, including Chris Blowers and Ellis Sher, who were joined by Paul Ross-Gower from CB Richard Ellis. Its seven staff will merge with Dragonfly’s eight.

Dragonfly is a subsidiary of Octopus Investment Group, which manages funds for institutional investors. Sher said: “We had a choice to go down the retail or the institutional route and decided we could grow faster choosing the latter.”

Dragonfly, which has made about £200m of loans since it was set up two years ago, will continue its joint venture with Topland and housebuilder Westcity, which aims to make mezzanine loans on prime central London housing.

Topland, which wants to channel £150m into residential development, has also teamed up with housing finance specialist Wolsey Securities  and made two investments. They are providing £2m to  Monro Homes to fund two developments in Maidstone.