LendInvest Mortgages has announced a new long-term development finance funding partnership with HSBC and AB CarVal, providing £175m of committed capital to support its development finance activity.
The funding includes £175m of senior capital from HSBC, supported by funds managed by AB CarVal and LendInvest.
It replaces and expands LendInvest’s existing institutional development finance arrangements, creating a larger and more flexible funding structure designed to support a wider range of residential development projects.
The facility is aimed primarily at smaller development loans, typically between £1m and £5m, a segment where small and medium (SME) developers often face limited access to traditional bank finance and where alternative lenders can struggle to scale.
LendInvest said the structure is designed to grow over time in line with activity in the residential development market.
Hugo Davies (pictured), chief capital officer and managing director of mortgages at LendInvest, said:
“This partnership is an important milestone for our development finance franchise.
“AB CarVal brings deep expertise and significant firepower; HSBC brings the institutional strength and continuity that has underpinned our success to date.
“Both bring a deep history of supporting SME developers. Together, this creates a sustainable, long-term funding framework designed specifically for the SME developers who deliver the homes the UK urgently needs.”
Victoria Lindsell, global head of structured finance at HSBC, said: “LendInvest continue to demonstrate their ability to originate and manage a strong portfolio of development loans within the UK market.
“HSBC are pleased to continue our partnership with LendInvest and to support them in the next phase of their ambitious growth plans alongside AB CarVal.”
Robert Sinclair, managing director at AB CarVal, added: “We are delighted to be partnering with LendInvest and their development finance team on this funding.
“Together with HSBC, this structure creates a compelling opportunity to scale and enhance our existing track-record of investment into segments of the UK housing market where demand continues to outpace supply.”
