Maslow Capital successfully completes on raising funds which will support small and medium-sized enterprise (SME) developers in the living sector. The institutionally backed fund will allow the award-winning provider of development finance to provide industry-leading rates on loans between £10m and £35m.
Maslow Capital is increasing its support for SME housebuilders, offering them funding with margins starting from 4.75%. The fund will focus on living sector schemes – including purpose-built student accommodation (PBSA) developments comprising 50 to 150 units, with leverage up to 70% LTGDV and 90% LTC.
Maslow Capital’s highly competitive pricing and leverage are designed to make its service more accessible to a larger number of developers, providing them with an opportunity to scale and grow their businesses despite the higher base rate and inflationary environment they face.
“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.”Ellis Sher, Co-founder & CEO, Maslow Capital
Alongside this SME-specific initiative – which complements the lender’s institutionally backed and diversified pools of capital under its management – Maslow Capital can provide individual financing of up to £300m per development.
This diverse range of funding solutions allows the lender to support projects of varying sizes – from SMEs to larger, complex developments.
“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 ~16,000 units across £4.7bn 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.”Emma Burke, Head of Origination, Maslow Capital
The SME initiative follows recent news of the lender providing a £114m loan to support the delivery of a Central London PBSA scheme.