Maslow announces a strong start to 2019 with the successful completion of eight transactions with a combined loan value over £100m

Maslow Capital, the specialist provider of real estate development finance, announces an excellent start to the year with the completion of a diverse range of development facilities that will see the delivery of 442,856 sq ft. of real estate assets covering residential, serviced apartments, student accommodation and retirement living.

With the completion of these deals, Maslow continues to demonstrate its deep sector and asset class knowledge which allows for the funding of complex deals across the UK. Strenghed by its depth of funding and recent high-profile additons to the team, Maslow continues to support capable developers in the delivery of their business plans notwithstanding the economic uncertainty facing the UK.

Commenting, Ellis Sher, Co-Founder and CEO of Maslow Capital, said:

“We are delighted with the start we have made to 2019, not only because of the quality of the transactions, but also their diversity. With the expansion of the Maslow team, we have more internal expertise to assess a wider array of deals which include specialist retirement living and serviced apartments. As we navigate the uncertain consequences of Brexit, we are committed to supporting our developers and working in partnership with them to deliver their real estate projects.”

Maslow is one of a handful of specialist development lenders who are able to write loans from £5 million with no upper limit and without rating agency or regulatory influence. The flexibility of Maslow’s balance sheet allows it to support multiple types of real estate and construction methodologies from self-build to fixed price and from part built to ground up.

Visit our deals page to see our latest completed schemes

Also see us featured in Property Week

Introducing our newest Originator, Emma Burke

Emma is a residential & commercial development finance specialist with a proven track record in building business relationships over the last 16 years in both the UK and Ireland.

Prior to joining Maslow Capital, Emma headed up Octopus Property’s Development Finance Team.

During her 3 years at Octopus, Emma was responsible for originating & structuring over £400m of development debt facilities and managing a team of 5 development finance specialists.

Before joining Octopus, Emma was part of the Structured Property Finance team at Investec Private bank and was responsible for deal origination and the management of an existing portfolio. During her time at Investec, Emma structured development facilities for the construction of industrial units, hotels, residential development sites, large PRS schemes and serviced apartments.

Emma holds a Bachelor of Business (Honours) Degree from National University of Ireland, Galway and has recently completed a leadership management course.

When asked what Emma will bring to the team Ellis Sher, Maslow Capital, Co-Founder and CEO said:

“Emma is driven, ambitious and has a terrific understanding of our market place. We are delighted that she has chosen to join us. Emma will play a central role in the Maslow origination team who together cover the length and breadth of the UK and where we have a broad appetite to fund real estate developments across residential, commercial, industrial, mixed use and purpose-built student accommodation.”

See us in Development Finance Today

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More than 10 years on from the global financial crisis, there is an abundance of liquidity for new speculative property developments, with lenders fiercely competing for a share of the market.

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£100 million in loan facilities in a record-breaking month

June has been a record-breaking month for Maslow Capital; completing £100 million of new facilities across four deals. The transactions will see the delivery of 1,100 new residential and student accommodation units in Manchester and Glasgow.

In total, these developments will deliver in excess of 847,000 sq. ft. of new residential and student accommodation. Three of the deals, totalling over 736,000 sq. ft. are located in Manchester, with the remaining deal providing 111,000 sq. ft. of purpose-built student accommodation in Glasgow.

Maslow’s record month follows more than £200 million of new development loans so far in 2018; a 20% increase compared with the same period last year. The addition of these four deals takes the total to over £300 million for the six-month period ended June 2018.

These recent closings highlight the strong demand for alternative sources of finance from UK developers. It also reinforces Maslow’s view that there is a broadening appetite for specialist lending.

Sky Mapson, Lead PBSA and Residential Originator at Maslow Capital, who is responsible for the four deals, said:

“The closing of these deals is further proof that not only is the demand out there for specialist funding but that developers are connecting in a big way with providers who combine a flexible approach with real expertise. That we can close £100m in facilities in just one month is a testament to the confidence that we and our clients have in certain parts of the UK and the chronic need for new housing in these cities. These deals demonstrate that we have a strong appetite to support regional developments across the country, providing loan facilities with an average size of £25m to experienced sponsors.”

June has been a tremendous month for Maslow following a strong start to 2018. Maslow Capital is delighted to meet the growing demand for alternative financing from developers throughout the country. In particular, continuing to see more and more opportunities across cities in the north and in Scotland – with Manchester and Glasgow two prime examples. Maslow expects this trend to continue throughout the year, as well as the broader trend of demand from clients for the unique combination of specialist knowledge, balance sheet strength, and structured credit facilities.

An exclusive feature was showcased by Real Estate Capital, read more here.

Has Help-to-Buy caused house prices to skyrocket?

It has been viewed as one of the most significant interventions in the UK housing market by a government in over 30 years, but since its inception in 2013 there has been continued controversy surrounding the Help-to-Buy scheme (HTB) which aims to help buyers onto the property ladder.

Whilst hundreds of thousands of household’s acquisitions have been supported by HTB equity loan scheme, it has been widely reported that the scheme has also resulted in a disproportionate increase in house prices which has in turn, further exacerbated the affordability factor. However, a closer look at regional statistics shows that the relationship between house prices and HTB is not so obvious. For example, London has evidenced a significant house price increase of 51% since April 2013 however only 13.4% of new build sales were supported by HTB equity loans. Conversely, Newcastle upon Tyne has recorded a price increase of 20.6% with a significant 50.6% new build sales supported by the HTB Scheme. This is similarly evidenced in Liverpool and Sheffield with 37.9% and 32.2% of purchases being supported by HTB respectively, but house price growth in these locations has been below the national average over the same period.

House price growth since HTB inception and % of new build sales purchased using HTB equity loan

help to buy

Source: HM Land Registry, Ministry of Housing, Communities and Local Government.

In addition, affordability remains an issue in many locations even with the support of the scheme. HTB equity loan purchasers require a 5% deposit which, in London, equates to £27,000 £12,000 in Birmingham, £11,700 in Leeds, and £9,400 in Liverpool, based on average new build house prices recorded by HM Land Registry. With the Office for National Statistics reporting that UK median disposable household income is c.£27,300, it can still take residents many years to save up enough to qualify for the scheme.

Whilst it’s easy for critics to blame HTB for price rises, the last 5 years have a been an unprecedented political and economic roller coaster and there have been many other factors at play, including interest rates at historically low levels and a weakened currency, which has made UK real estate, including regional property, more attractive to overseas investors. Moreover, it is a well-known fact that the housing market remains inherently under-supplied in many parts of the country. Whilst it cannot be argued that house prices across the England haven’t increased significantly since 2013, it is difficult to assess the true impact of HTB where markets are so under-supplied.

Whilst HTB continues to cause controversy, it is my view that affordability measures such as HTB are required to ensure home ownership can be achieved by a greater proportion of the population. These measures however are not the only solution and the continued supply of accommodation in all regions is essential. New supply will not only deliver affordable accommodation but also assist in moderating the high rate of price growth that has been evidenced. Maslow Capital is focused on supporting house builders in affordable locations and recognises the HTB scheme as one part of a portfolio of measures to assist purchasers with owning their own home.

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