Topland investing £150 million in residential sector (UK)
Monday 19 September 2011
Topland, the international investment group, has just completed its first two deals with Wolsey Securities, specialists in residential development finance, as part of its ongoing commitment to the UK residential housing market, primarily in the South East of England and commuting belt to London.
The aim of investing in excess of £150 million (approx. €172 million) in the residential sector is a clear strategic goal for Topland. By teaming up with Wolsey to draw on their residential and operational expertise, Topland will make funds available to inject into the market, ranging from senior debt through to mezzanine funding or a combination of both.
The first two deals are both in the South of England, financing Wolsey’s client, Monro Homes, a Kent-based developer, on two developments in the Maidstone area. The total funding is just under £2million. And already in the pipeline are a number of opportunities, which, if completed, will lead to approximately £8million of further funding being injected into the market through Wolsey.
Funding of up to 85% of development costs is available for the right schemes.
Stephen O’Brien, Managing Director of Wolsey Securities, says: “To be able to make available funding up to 85% of all development costs is exceptional in this market. It’s a real incentive for good housebuilders with the right schemes to increase the number of projects they have underway in their portfolio.
"We are delighted to be working with such a strong financial institution as Topland, who fully understand the risks involved in residential property development and recognize the opportunity to fund housebuilders in the current market.”
Tom Betts, Director of Structured Finance at Topland, says: “We are very pleased with the creation of this partnership with Wolsey. Their skill sets are ideally suited to dovetail with the financial strengths of Topland to deliver high quality funding packages for developers. Prices are appropriate to allow developers to take advantage of the opportunities that are clearly available within the market whilst growing their business.
“The partnership with Wolsey reinforces our commitment to investment in the residential sector and we believe that there are good business opportunities for the right developers to work with Topland and Wolsey.”
The partnership will focus primarily on schemes with planning consent in the South East of England and commuting areas to London.
“If the scheme meets our criteria, with Topland, we will move quickly to support the developer and make the development happen. Loan sizes will typically fall into the range from £1 million up to £10 million.” says O’Brien