TAB secures £300m securitisation facility from NatWest and Atalaya Capital Management

By Bridging Loan Directory 23rd October 2023

TAB, the real estate finance and investment house set to have a £500m loan book in 2024, has completed a private securitisation facility with NatWest and Atalaya Capital Management of up to £300m to support TAB’s lending products.

Both funding partners support TAB’s commitment to offering ESG-focused mortgage loans to borrowers, prioritising sustainable and responsible business practices.

As part of the funding line, Atalaya Capital Management is strengthening its partnership with TAB by providing mezzanine notes for the facility, demonstrating its continued commitment following a £120m revolving credit facility which closed in 2022.

Duncan Kreeger, CEO and Founder of TAB said:

“Our new funding line marks a monumental moment for TAB.

Partnering with an established institution of NatWest’s size is testament to the progress we have made and the confidence in our vision.

The completion of the private securitisation facility is a strategic move that will significantly enhance our ability to provide more competitive and flexible financing options to our borrowers for both short term bridging finance and longer term mortgages.

This marks the most recent significant milestone for TAB, following the launch of our commercial mortgage product.

The new commercial mortgage product emphasises sustainability and incorporates ESG criteria to promote best practices and incentivise those through ESG Discounts.

The mortgage product offers borrowers commercial loans from £150,000 to £2,500,000, terms from three to ten years and a flexible loan-to-value of up to 65%.

Borrowers can qualify for discounts of up to 1.25% off a fixed exit fee of 2.5% by satisfying ESG criteria.

The collaboration with NatWest allows us to not only meet the demand for competitive financing solutions but, in relation to the mortgage product, also to contribute to a more sustainable and resilient real estate finance landscape.

I am particularly excited about the extended partnership with Atalaya Capital Management, solidifying their commitment with mezzanine finance.

Given how much we value this relationship, we are really pleased that their continued support demonstrates their confidence in TAB’s growth trajectory.

Together with our strong private investor base, we are building a robust foundation for future success.”

I would also like to thank both the EY team, for arranging and providing support on this transaction, as well as our legal team at Ashurst.”

Brian Moore, Principal at Atalaya Capital Management said:

“Atalaya Capital Management is happy to deepen its partnership with TAB through the provision of further finance alongside NatWest.

This is a significant step forward in our commitment to TAB, following our £120 million revolving credit facility in 2022, consistent with our positive orientation towards TAB’s business model and outlook.”

Daniella Siretz, Managing Director at NatWest said:

“NatWest is pleased to support TAB both in the bridging space and with its new term mortgage product that encourages ESG-positive behaviour.

Sustainability is a key focus for NatWest and we look forward to a successful and sustainable partnership with TAB.”

EY advised on the deal, Jack Dutton, Director, who led the transaction for EY said:

“We are delighted to have once again supported TAB in a landmark financing, specifically its first securitisation facility covering its existing TAB Bridge product and its newly launched TAB Mortgage product.

This round of financing follows the original capital strategy we supported Duncan and the team with, having previously advised the business on its facility with Atalaya Capital Management in 2022.

Now with the support of NatWest Markets and the continued backing of Atalaya, we are excited to see the ongoing development of the TAB group as it goes from strength to strength”