Topland Group’s structured finance arm has completed around £75m of new lending during the first quarter of 2018 and is actively targeting more opportunities to fund developers and joint venture partners via stretch senior, mezzanine and bridging loans.
The group, which undertook some £300m of lending activity during 2017, has now deployed over £1.1bn of Topland’s cash reserves to some of the leading developers and investors across the UK. Topland is actively targeting further growth following a number of the group’s recent asset sales which have released further equity to be deployed back into the loan market.
Recent deals include a £40m loan to fund the acquisition of 4 sites across the south coast with planning permission for a total of 1,000 retirement modular bungalows, a £15m loan for a new commercial development in Gosport pre-let to a number of strong covenants including Iceland, Lidl and M&S, a refinance of a major hotel on the Thames and a £10m development finance loan for a single residential unit in Wimbledon to a high profile retailer.
Ed Matthews of Topland Group, said: “While the mainstream lenders continue to exercise caution in the development finance arena, the alternative lending market is increasingly competitive and diverse. At Topland our point of difference will always be the depth of our in-house expertise alongside the ability to make decisions and execute deals quickly, although we also recognise the need to offer more flexible and competitive terms.”
To that end, Topland has allocated a £250m war chest to be specifically deployed on more competitive loan products starting at 5% and has also expanded its maximum LTV to 85%.
Sol Zakay, Executive Chairman and CEO of Topland, said: “Topland’s structured finance division is now a well-established alternative lender with an ability to complete loans in record time. We remain committed to future lending activity via a range a senior, mezzanine and preferred equity finance. With significant cash ready to deploy, we are constantly reviewing our product offering to ensure that we are always well-placed to react quickly to the best opportunities presented to us.”