Laxfield Capital, the commercial mortgage origination, investment management and advisory business, today announced the launch of a new UK commercial lending program.
The program will invest up to £1 bln in UK commercial mortgages over the next 24 months. The real estate arm of the Government of Singapore Investment Corporation (GIC) has provided initial investment in the program.
The Laxfield Capital program will provide individual loans of between £40-£185 mln (approx. €47-€217 mln), five-seven years duration and up to 75% loan-to-value (LTV) to a wide variety of commercial property sectors, including office, retail, industrial, residential and leisure across the UK.
The program will provide whole loans and syndicate up to 75% of each mortgage to other preferred investors. GIC will retain a substantial junior investment in each loan.
Adam Slater, Managing Director of Laxfield Capital, said: "The Laxfield Capital program will fill a gap in the large-ticket commercial mortgage sector as few lenders are currently able to provide whole loans in excess of £100 mln at up to 75% LTV, particularly outside core locations or prime assets. I believe the program will have a considerable impact on the UK property market with a significant injection of liquidity at a time when traditional sources of funding are contracting.
"This is a good example of how alternative sources of capital are successfully entering the space traditionally dominated by banks. The investment from GIC is a strong vote of confidence in our program and in UK commercial mortgages, and provides an ideal market entry point for other investors seeking access to quality mortgage investments."
Chris Morrish, regional Head of Europe, GIC real Estate, said: "We look forward to our partnership with Laxfield Capital, which has demonstrated strong capabilities in loan origination and has generated value for commercial mortgage investors. The program complements our existing direct junior debt investment strategy which we will continue to pursue."
Source: Laxfield Capital