Capital A set to move into third-party origination

Capital A Finance plans to start originating loans for third-party mandates in 2014 after investing almost £250m in 12 months.

The specialist lender was set up last year by former Investec bankers Daniel Austin and Jonathan Arnst with capital from private investor the Pears Group.

Capital A’s latest investment is a £40m slice of a £62.5m refinancing with Dragonfly Property Finance of an expired Co-op Bank loan. The Co-op is quitting property lending and calling in loans after revealing a £1.5bn capital hole in June.

The replacement, short-term loan covers five residential blocks in W1, W2 and W8 valued at around £100m and owned by a private investor.

Capital A has expanded its loan book, often through taking planning risk, especially on central London developments, then refinancing some of the schemes after planning
permission is won.