Bridging finance fund bucks performance trend during pandemic

By Bridging Loan Directory 18th June 2020

With most asset classes continuing to struggle though the pandemic, specialist bridge financing fund Whitehall Capital Management Limited (‘Whitehall Capital’ or ‘the Fund’) continues to buck the trend. The Fund, which seeks to deliver growth on investors’ capital through property backed loans made to clients in both the Residential and Commercial Real Estate markets, delivered a net return of 2.19% for the first quarter. It looks set for another strong quarter with anticipated returns of 2-3%, and with the Fund opening for subscriptions and redemptions at the end of the month, and performance consistently above its 10% target annualised return, Whitehall Capital anticipates elevated interest.

With an annualised return of 10.9% last year, 10.12% for the 12-month period to 31 March this year and 27.2% since inception (August 2017), the Fund is continuing to underline its low correlation to broader equity markets and the resilience of the UK bridge lending market in the context of the current economic environment and a housing market brought to a near standstill under lockdown. The Fund is however designed to generate returns irrespective of market conditions and looks to exploit short to medium-term bridging opportunities, secured against UK Real Estate – offering investors access to an asset class hitherto reserved for institutional investors.

The market

Its careful selection of high-quality borrowers and low LTV loans are proving to be a recipe for success in the current market environment with all loans being serviced.

Whitehall Capital Founder and Managing Partner, Anthony Bodenstein said:

“We continue to process the loans in our pipeline, which remains strong – and whilst the base case is generally for things to get worse before they get better, we are, with £5m of new money raised during Q1 and further liquidity added through a £10m bank facility, funded to move fast.

We have only this week completed a large loan on a prestigious business park in the North East, further extending our geographical footprint, and could not be more pleased with the opportunities being presented to us at this time.

It speaks to the strength of our self-funded model and the reputation we are building for getting projects funded, often when other lenders say no – and for clear, open, honest communication throughout the loan process. We see the Fund as a rare opportunity to invest in a growth market at this time and secure an attractive asset-backed return.”

Whitehall Capital Management Limited is advised by Amram Capital (UK) LLP, which boasts a proven track record in Asset Management.