The funding comes through two income funds, Series 1 and 2, which have been allocated to finance bridging loans with a target of 75% loan to value and short and medium-term secured lending with a target of 65% LTV respectively.
The average LTV across both funds is currently below 60%.
Connaught claimed that since the launch of the Series 1 income fund in July 2008, it has funded over 550 loans to the sector.
Alistair Mawdsley, director of Connaught, said: “Connaught now has two bridging loan funds for which Tiuta is the specialist partner.
“These funds currently add £130 million to the lending market at a time when funding from more traditional lines continues to be restricted.
“In a market where positive growth and good income are both difficult to find, funds that achieve both are in short supply but this is exactly what the distribution or reinvested options for our income funds offer.”
Steven Nicholas, chief executive of Tiuta, added: “We continue to have a quality funding relationship with Connaught Asset Management and the fact that over £130m of lending finance has been made available to us through the Income funds is a significant achievement.
“There continues to be strong and ongoing demand for short-term and bridging loans as many other finance avenues are closed to borrowers.
“We will continue to work closely with Connaught to ensure we can support all those borrowers who are seeking short-term and bridging loans and we envisage a very successful end to 2011 and a strong opening to 2012.”
