CapitalRise secures £250m bank funding line

By Bridging Loan Directory 15th January 2024

Leading prime property finance firm CapitalRise has today announced a new £250m bank funding line, as part of the firm’s wider approach to diversify and increase the resilience of its capital sources and facilitate further lending growth.

This latest funding line is the fifth and largest secured by the firm to date.

Alongside variable pricing options, this funding line will now also enable CapitalRise to offer fixed pricing for UK limited company borrowers, providing its customers with greater cost certainty against the current backdrop of interest rate volatility. More will be announced by the firm in the coming months on this new offering.

Since its inception in 2016, CapitalRise has funded property developments across Prime Central London, Prime Outer London and the Prime Home Counties to the value of £859m.

The prime property market is renowned for its resilience relative to the wider property market.

CapitalRise has seen strong demand for funding from borrowers and its loan book has grown rapidly as a result. By continuing to diversify and strengthen its funding lines, the firm can respond to this demand and continue to serve borrowers in these exclusive corners of the UK property market with its flexible, bespoke lending solutions.

Uma Rajah, CEO and Co-Founder of CapitalRise, said:

“A diverse range of funding lines support the growth of the business and provide us with a resilient and varied capital base.

Securing a facility of this scale and nature is a great new addition to our existing partnerships. It is a testament to our depth of expertise and strong track record in this specialist area of the real estate market.

We continue to grow the team too, bringing new talent into nearly every department of the business. Combining this new funding line with increased capacity within the team enables us to turbo-charge our growth and serve increasing numbers of borrowers.”

Lee Francis,pictured, Head of Origination at CapitalRise, said:

“This new facility will enable CapitalRise to continue responding to demand and offer greater volumes of funding for projects in the best locations.

Our specialised sector expertise and robust lending practises have allowed us to keep our door wide open to new enquiries, at a time when many other lenders are retrenching from the market.

This additional lending capacity and the introduction of fixed pricing also provides cost certainty for borrowers during times of volatile interest rates, and further solidifies our position as the lender of choice for prime property finance in the UK.”

Pip Lashko-Sayers, Associate Director, Capital Markets at CapitalRise, added:

“We operate a multi-funded model and retain an ambition to diversify both our capital sources and product range even further to support a wider range of borrowers.

Our door remains very much open, and we are always keen to discuss new institutional funding lines to supplement the considerable existing capital resources.

The sectors that we focus on – Prime Central and Outer London, and the Prime Home Counties – continue to buck trends seen in the wider UK property market, as the prime sectors run on an entirely distinct cycle.

There remains a vast range of attractive investment opportunities in our target markets that we are keen to support, particularly with enhanced tools and resources at our disposal.”