Cynergy Bank, the former UK branch of the Bank of Cyprus, is launching a £500 mln (€580 mln) 'Brexit-busting' fund for developers and investors hit by the slowdown in UK house price growth.
The Property Entrepreneurs Fund is aimed at private landlords who are finding it harder to access finance, partly because of the uncertainty surrounding Britain's departure from the EU.
Private rental accommodation is expected to account for one in four UK households by 2021, making the sector a resilient medium to long-term development, said Nick Fahy, chief executive of Cynergy Bank.
'The deal that Britain eventually strikes with the EU is unlikely to end the uncertainty in the property market,' Fahy said.
'Our customers tell us they expect to see continued downward pressure on property prices for some time, but they also tell us they’re impatient to start investing again.
'We’ve launched this fund now, because we’ve seen an upturn in drawdowns from property investing clients – showing that they are no longer waiting for Brexit clarity to invest.
'We already support thousands of property developers and landlords and this new fund is targeted at property entrepreneurs looking to expand and diversify their portfolios.'
The fund could also be used to cover student accommodation, where there is a lack of supply as UK universities become more affordable due to the low cost of sterling.
Cynergy Bank was launched in December last year following the acquisition of Bank of Cyprus's UK branch by Cynergy Capital in a deal valued at £103 mln (€120 mln). Bank of Cyprus sold its UK operation, which had provided banking services since 1955, in order to focus on domestic business.
