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Maslow Capital buys £100m loan portfolio

Maslow Capital has completed the acquisition of a loan portfolio secured against a blend of land with planning, residential, purpose-built student accommodation (PBSA) and mixed-use development schemes. This represents Maslow’s first participation in the secondary market with a further transaction currently under consideration.

In aggregate, the portfolio will see more than 438,000 sq. ft. of new residential, mixed-used and PBSA units delivered.  Assets are well located across regional markets in the UK and are in line with Maslow’s strategy of targeting key regional cities.

Demand for Maslow’s senior debt and stretch senior debt products have been growing and we have, to date, provided debt facilities with a collective GDV in excess of £1.6 billion, covering 4,900 new properties enabling the delivery of more than 3.2 million sq. ft. of new accommodation throughout England and Wales. Maslow’s ability to acquire this portfolio was made possible by the depth and flexibility of its balance sheet together with a team that possesses the necessary skills to assess a complex loan portfolio secured on part-built assets.

This acquisition represents an exciting opportunity for Maslow, enabling us to gain further exposure in target markets across the UK, reinforcing our capability across residential, mixed-use and the PBSA market, in which we see particular growth potential going forward. The purchase of an existing loan portfolio is a first for us and we hope to make further acquisitions of this nature in the future as we further scale our lending.

NEWS: 2018 kicking off with 4 deals, £74 million

Maslow is delighted to announce the completion of four exciting deals with a total of £74 million lent.

The four deals provide funding for new residential developments in London and Manchester, delivering more than 80 new apartments and new commercial space along with 211 student beds in Coventry, and 246 in Sheffield. In aggregate, the developments will deliver more than 195,000 sq. ft. of new accommodation in sought after locations.

Specifically, these loans will assist with the delivery of 18 new apartments and a new commercial unit at Halt Parade, London, NW9 arranged over six floors and the construction of 66 new flats which will be delivered in the Ancoats district of central Manchester, addressing continuing need in the city for well-located apartments.

In Coventry and Sheffield, the funding packages will see more than 450 new student beds brought to market in cities where university accommodation continues to be in high demand.  Both cities are growing as centres for education, and these new facilities, which will be located near main university campuses, will be completed in time for the 2018/19 academic year.

The deals represent a continuation of Maslow’s diversification of its exposure into different real estate market segments covering residential, mixed-use and purpose-built student accommodation across the UK.

A look into our crystal ball, 2018, key trends to look out for

As the unpredictable, uncertain 2017 draws to a close, we have reflected on the year behind us and have taken a brief look at the key trends to look out for in 2018.

  1. Without doubt the housing sector will remain top of the government’s agenda in 2018, ahead of Brexit. With many considering supply shortages as the biggest threat to the UK economy, in our recent article entitled “Without the right foundations, 300,000 new homes will simply not get built” we consider the true changes needed to boost housing supply in 2018, including proper collaboration between the public and private sector and proper reform of the planning system. Could 2018 be the year that the government introduces significant changes to truly drive the housebuilding sector forward?
  2. Should economic growth exceed expectations in 2018, it is likely the Monetary Policy Committee will raise interest rates, with some predicting a double rate rise over the course of the year. Whilst the Royal Wedding in May is predicted to boost the UK economy, a rate rise will also greatly depend on whether inflation has now reached a peak. However, a 25 – 50 bps rate rise to historically low rates, is unlikely to have any significant consequences to the housing market in the short term. In the third quarter of the year, the Building Societies Association reported that 90% of new mortgages taken out with Building Societies were on a fixed rate. The real impact of rate rises and the time to truly be concerned is yet to come, when, in 2/3/5 years’ time these fixed rates expire, and homeowners find themselves on much higher variable rates or having to choose between other higher rate products.
  3. A year ago, we predicted a continued rise in the Build-to-Rent sector as stretched affordability in certain parts of the country would leave the desire for home-ownership as a distant dream for many, increasing demand for quality rented accommodation. Affordability issues have not disappeared and therefore this sector continues to grow, and we anticipate this to remain the case in 2018.
  4. The main tranche of the market where we expect further strong activity is that of the first-time buyers (FTBs). In 2017 FTB activity was significant; according to UK Finance, there was a 10.5% increase in the number of loans for house purchase to FTBs in October 2017 when compared to a year earlier. We expect this trend to continue boosted by the extension in Help-to-Buy and importantly, the scrapping of stamp duty for FTBs up to £300k on properties valued less than £500k. This should also encourage developers to build units below this threshold as this, in the right location, is where they should find a steady stream of demand.
  5. And lastly, whilst market growth will be muted in 2018, we do anticipate above-average growth in the North West, North East and Yorkshire and Humberside. Regions where affordability is most stretched, including London and the South East, are likely to underperform the rest of the country. However, even within this part of the country, there will continue to be some growth in some locations, such as in the up and coming London boroughs, those benefiting from the Elizabeth Line, and along the commuter belt where prices will remain under upward pressure because of supply shortages.

Moneyfacts Awards; Maslow Capital for Best Development Finance Provider

Maslow Capital is delighted to announce that it has been nominated as a finalist in the Business Moneyfacts Awards 2018, in the category for the Best Development Finance Provider.

The awards will be held at a prestigious gala dinner on the 21st March 2018 in London. The event is the largest business finance awards ceremony in the UK, making it a highlight in the industry calendar.

Others in the run for the title of Best Development Finance Provider are Aldermore, Amicus, Fortwell Capital, Hampshire Trust Bank, LendInvest, Masthaven Bank, Octopus Property, Regentsmead and United Trust Bank.

More information on all the categories and finalist can be seen here: https://lnkd.in/d7NM5Ui

Good luck to all those nominated, we’ll see you in 2018 for an evening of celebrations.

Maslow Capital Purpose Built Student Accommodation (PBSA) Portfolio Update

We are a leading provider of development finance for the construction of purpose-built student accommodation (PBSA). To date, we have supported a number of developers with both senior and stretch senior finance facilities and we have a tremendous appetite to grow our loan book by supporting experienced developers with their PBSA schemes.

Next week we’ll be at the Property Week Student Accommodation Conference, and encourage anyone interested or involved in the Purpose Built Student Accommodation (PBSA) industry to attend the event and chat with Sky Mapson our PBSA specialist originator and his team at our exhibition stand.

Sky Mapson can be contacted on:
Email: sky.mapson@maslowcapital.com
Mobile: 07500 874 468
Landline: 0207 016 1465