Development finance provider Maslow Capital has successfully completed a fund-raise which is specifically focused on supporting SME developers.
The institutionally backed fund will allow Maslow to provide competitive rates on loans between £10 mln (€11.6 mln) and £35 mln, the firm said.
Ellis Sher, co-founder & CEO at Maslow Capital, said: 'The SME sector is vitally important for the health of the UK's housing market, functioning as a vital source of innovation, job creation, and economic growth.
'The strain on SMEs is palpable, particularly for those in the housebuilding sector. These businesses are grappling with higher base rates and an inflationary environment that significantly restricts their ability to grow.
'Our initiative aims to lower the cost of development debt at a time when it is needed most, providing these businesses with the necessary funding to thrive despite these challenges.'
Amidst the backdrop of the Bank of England's twelfth consecutive interest rate hike, Maslow is intensifying its support for small and medium-sized enterprise housebuilders by providing them with funding with margins starting from 4.75%.
The fund will focus on living sector schemes including PBSA developments comprising 50-150 units with leverage up to 70% LTGDV and 90% LTC.
This new fund serves as a complementary addition to Maslow’s institutionally backed and diversified pools of capital under its management.
Alongside this SME-specific initiative, the lender maintains its capacity to provide individual financing up to £300 mln per development.
In doing so, Maslow continues its commitment to support projects of varying sizes, from ambitious SMEs to larger more complex developments. The ability to support the property development sector with such a diverse range of funding solutions, ensures that Maslow remains a versatile and reliable financial partner for the entire sector.
Emma Burke, head of origination at Maslow Capital, said: 'We are excited to bring this industry-leading proposition to market at a time when it can have a particularly significant impact on the sector.
'Maslow has funded the delivery of some 16,000 units across £4.7 bn of developments and we intend to leverage this experience, bringing together a highly experienced team, a streamlined process and now unbeatable pricing to deliver robust funding options that can support growth in the SME housebuilding sector.'
