Whitehall Capital Fund (‘Whitehall Capital’ or ‘the Company’), the specialist commercial and residential property bridge financing fund, is delighted to announce that it has completed a £1.37m loan for a residential property valued at £2.15m and located in Peterborough, Cambridgeshire. The Vineyard is a Grade II listed 18th Century detached house containing 7 two-bedroom apartments that covers an area of two acres.
Whitehall Capital believes that the risk profile of the property is moderate/low. The loan has a tenor of 12 months with an interest rate of 1.1% per month. Covenants include that the LTV ratio must not exceed 70%.
The Company has completed over 40 loans to date with its success being driven by its competitive pricing on loans, readily available capital and therefore fast and efficient turnaround times. Recent transactions include a £2.8m loan to ESRG Land South East Limited utilised in the construction of the 209-unit Veneti Apartment complex in Poole, Dorset, and a £1.85m facility to Ringway House Developments Ltd, secured against its Urban Village project in Coventry which comprises a series of redevelopment schemes in strategic locations across the UK.
Whitehall Capital, part of the Amram Capital Wealth Managers group, issues short term loans (normally 3 to 12 months) that are primarily secured against residential UK property although properties may be residential, commercial, mixed-use or land with planning permission. It ideally targets loans secured against properties worth between £1m and £10m. The majority of loans are in the £1-5m range. The fund only lends against properties in the UK and has a conscious bias towards big cities – London, Manchester, Birmingham etc. Its current focus area is outside central London but within the M25, but it is actively looking to be a more national lender of choice for its target market.
The loan target net return to investors is between 10% to 12% per annum. Since its establishment, Whitehall Capital has returned a net 10.4% on loans on an annualised basis.
Anthony Bodenstein, CEO of Whitehall Capital, said:
“We are delighted to have added this residential property loan to our rapidly growing loan book – the Company has funded £25 million in property transactions in the past three months and is actively looking to expand its loan book. This latest loan is representative of the Company’s strategy of targeting loans to professional and established real estate investors and developers with a proven track record and secured against properties primarily valued between £1m and £10m, which our evaluation process deems as being low risk.
“The UK property bridging market has proven to be relatively resilient over the last 18 months and has already recovered from the contraction caused by Brexit – annual completions have risen by 27.2% compared with the year ended 30th June 2017 according to figures from the Association of Short Term Lenders. The immediacy of our capital access and the size of our loan book proved attractive to this client and to many others.”