Business
Launch of new platform for senior loans
Launch of new platform for senior loans.
About this update from First Property Group Plc
[{"type":"text","content":"\n\n\n\n\n\nDate:\n\n\n7 June 2023\n\n\n\n\nOn behalf of:\n\n\nFirst Property Group plc (\"First Property\", the \"Company\" or the \"Group\")\n\n\n\n\nEmbargoed:\n\n\n7am\n\n\n\n\n \nFirst Property Group plc\nLaunch of a new platform for senior loans against commercial property\nFirst Property Group plc (AIM: FPO), the property fund manager and investor, is pleased to announce the launch of a senior loan making platform for the financing and refinancing of commercial property. With interest rates increasing and banks retreating from the commercial property lending market, the returns available in making relatively safe loans are potentially more attractive than investing in the underlying property.\nSome £24 billion of commercial property loans are reported as due to expire in the next 12-18 months.\nThe platform's focus will be on making loans of: up to £20 million in value; up to 65% of loan to value (LTV); and interest only. The Board of First Property believe that the higher LTV and interest only aspect of loans made via the platform make them close to unique in the current state of debt markets. The capital for making the loans via the platform will be sourced from First Property's own cash resources and third party investors.\nThe Group' expertise in the underlying real estate gives the platform a competitive advantage in making these loans. \nBen Habib, Chief Executive Officer, commented:\n\"Our move into senior secured commercial property lending via this platform is in response to a clear gap in the market created by higher interest rates and a retreat of traditional lenders, including banks.\n\"Our loan platform offers borrowers better terms than are typically available and investors in loans made on the platform a high rate of return. For these reasons it is a good time to be entering the market.\" \nENDS\n \nFor further information please contact:\n \n\n\n\n\nFirst Property Group plc \n\n\nTel: +44 (20) 7340 0270\n\n\n\n\nBen Habib (Chief Executive Officer)\nLaura James (Group Finance Director)\nJeremy Barkes (Director, Business Development)\nJill Aubrey (Director, Compliance & Company Secretary)\n\n\[email protected]\n \n\n\n\n\n\n\n\n\n\n\n\n\nAllenby Capital (NOMAD ...