Relendex has announced a new partnership with the British Business Bank, which will see the Bank commit £15m to support SME housebuilders and developers.
The investment will be managed by Farringdon Portfolio Ltd, Relendex’s appointed representative, and will involve the Bank co-investing up to 25% in every eligible loan on equal terms with other Relendex investors.
The agreement significantly enhances Relendex’s lending capacity, allowing it to provide more tailored finance for smaller housebuilders.
The company has already originated about £200m in loans and expects to grow its loan book further under the new framework.
Paul Sonabend, chairman of Relendex, said: “We are proud to be working with the British Business Bank to expand the reach and impact of our lending programme.
“Relendex was founded to support regional housebuilders by providing tailored, flexible finance, and this partnership is a strong endorsement of our model.
“With the Bank’s support, we can scale up our role in delivering high-quality homes, including affordable housing, and play our part in driving growth across the UK housing sector.”
Martin Murphy, lending director at Relendex, said: “Partnering with the British Business Bank represents a significant step in strengthening both our reputation and our ability to support SME housebuilders.
“These businesses play a vital role in addressing the UK’s housing shortage, yet often face barriers in accessing the right finance.
“With the British Business Bank now co-investing alongside our retail and platform investors, we can provide more housebuilders with the certainty and funding they need to deliver much-needed homes.”
Adam Kelly, managing director and co-head of funds at the British Business Bank, said: “We are pleased to make this commitment to Relendex, supporting lending to SME housebuilders across the UK.
“SME housebuilders are key to building a diverse housing sector, providing greater consumer choice and leveraging local expertise.
“Our commitment will help developers to build new homes, refurbish existing properties and use modern methods of construction to grow the UK’s housing stock, supporting the Government’s target of building 1.5m new homes over the next five years.”
