UK-based development finance provider Maslow Capital has formed a joint venture with the special situations division of San Francisco-based private equity giant TPG.
Maslow and TPG Special Situations Partners will focus on UK residential development, offering stretch senior finance. The JV will lend up to 90 percent loan-to-cost provided deals amortise to around 70 percent of gross development value during the loan term, which will typically be up to three years.
The JV will also have the ability to offer mezzanine finance as well as bridge loans for sponsors planning development schemes. Typical deals will be between £1 million and £50 million, with the preferred loan size around the £10 million mark.
The partners did not disclose the size of TPG’s allocation to the JV, although Maslow’s co-founder Ellis Sher said “several hundred million pounds” is available.
The launch of the JV follows the end of a four-year management and consultancy agreement between Maslow and Dragonfly Property, which is owned by Octopus Investments group. In September 2011, Dragonfly acquired Maslow’s existing loan book, which at the time stood at around £15 million. Maslow subsequently originated loans on Dragonfly’s balance sheet.
London-based Maslow was established in 2009 by co-founders Sher and Marc Rose.
“We are delighted to have been able to agree this joint venture with TSSP, one of the world’s leading investors in global speciality credit platforms and look forward to building substantially upon our already established market reputation and presence,” said Rose.