Together Financial Services has launched a new £525m commercial real estate (CRE) warehouse facility.
The UK specialist mortgage lender revealed today (4 July) that it has set up a warehouse facility for its CRE loan portfolio and it is hoped this will support the group's growth strategy and provide further flexibility and diversity to the funding structure.
Highfield Asset Backed Securitisation (HABS) has a four-year term with a 3-year revolving period and provides an efficient funding solution for the small balance CRE loan portfolio.
This transaction follows the group's refinancing of its £255m Lakeside asset backed securitisation (LABS) programme, extending its maturity to 2021 on improved commercial terms, and a £150m bond tap, which were both announced in January.
Gary Beckett, group managing director and chief treasury officer of Together, said: "We are delighted to announce the successful launch of our inaugural warehouse facility for commercial real estate, HABS, which will be used to support growth in our lending to small and medium sized businesses and commercial portfolio investors.
"The £525m facility adds further depth and diversity to our funding structure and clearly demonstrates continued confidence in Together as we look to continue to deliver on our ambitious growth strategy."
Together has traded profitably through every economic cycle since it was founded more than 44 years ago and has more than 700 employees and a loan book in excess of £2.78bn.
In the quarter to 31 March, the group reached record quarterly lending volumes of £422m with new originations remaining at a very conservative loan to value of just 58.8 per cent.
aamina.zafar@ft.com
