TowerBrook Capital Partners has backed a newly launched UK development lending platform created by the co-founders of real estate financier and asset manager Urban Exposure.

Précis Capital Partners, led by its co-founders Randeesh Sandhu, Daljit Sandhu and Karen Dunstan, has been set up to provide flexible and efficient debt financing solutions for large-scale residential projects.

The Sandhu’s are co-founders of AIM-listed Urban Exposure. Dunstan previously served as general counsel of Urban Exposure, after starting her career as a lawyer at King & Wood Mallesons, Herbert Smith and Charles Russell Speechlys.

Précis Capital intends to originate, underwrite and manage whole loans of over £50m (€57.8m) to finance the construction of residential for sale, build to rent, retirement living communities, co-living spaces, student accommodation and other residential assets, with a view to providing up to £1bn of development financing a year.

“A chronic funding shortfall has been among the biggest contributory factors to the structural imbalance within the UK housing market we are seeing today,” said Randeesh Sandhu, CEO at Précis Capital.

“Increased volumes and more efficient delivery of private development financing are a fundamental prerequisite for bridging the gap between the longstanding and fast-growing demand for housing in the UK and the supply currently delivered by homebuilders.

“We are extremely excited to be drawing on our experience and partnering with TowerBrook, with their proven history of backing specialist financing platforms such as Hayfin Capital Management and Ladder Capital, to meet this challenge and address the market need.”

Daljit Sandhu, COO at Précis Capital, said: “There is a significant opportunity for a new purpose-led approach to lending in the current market. 2021 is a pivotal moment for the UK’s construction industry and we aim to help the industry transition towards net-zero targets with sustainable build standards, adopt technology and embrace modern methods of construction.

”We want to support the economic recovery, the government’s green agenda and the ‘levelling up’ policy programme.”

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