The £150 million securitisation will fund loans secured against property developments across Britain
Non-bank lender Together Financial Services has initiated its first securitisation facility aimed at property development lending, named ADALO Asset Backed Securitisation, with a value of £150 million.
The ADALO Asset Backed Securitisation will fund loans secured against property developments across England, Wales, and Scotland. Initially, it will encompass loans previously part of the group’s senior secured notes security.
The new facility complements Together’s existing funding structures, which include seven public residential and four commercial real estate mortgage-backed securitisations, six private securitisation facilities, senior secured notes, and a banking syndicate facility.
The move, Together said, is set to support developers in contributing towards the UK government’s goal for constructing new homes. The £150 million securitisation also marks a significant step for Together in its aim to offer additional financial flexibility and enhancing the diversity of the group’s funding framework. The facility is scheduled to mature in 2028.
✍️ We’re excited to announce the launch of our £150m development finance facility
— Together (@Together_Money) March 18, 2024
🏡 Our development finance team can help unlock the additional finance needed for building projects. This includes experienced small and medium sized regional developers undertaking residential… pic.twitter.com/rXzP2Sey9B
“We are excited to announce the successful launch of our first ever securitisation for property development lending,” said Mike McTighe, chairman of Together. “This innovative new facility will provide support for our development customers in helping to address the UK’s housing shortage.”
Gary Beckett, group managing director and chief treasury officer, highlighted the company’s efforts in raising or refinancing more than £2.4 billion since the beginning of the financial year in July to bolster growth plans.
“The launch of this unique facility further diversifies our funding profile and demonstrates Together’s strength and capability to deliver funding capacity to support our diversified product base,” Beckett said.
Ian Pickering (pictured), director of development funding at Together, said the new £150 million securitisation facility “will provide a much needed shot in the arm to housebuilding schemes across the country and help developers fill some of this backlog of missing homes.”
The lender, holding a loan portfolio valued at £6.8 billion, boasts a dedicated development finance team, which supported the construction of more than 7,000 homes in the past five years.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
