Uncap your ambition with Maslow Capital (Video)

Maslow Capital is a leading provider of real estate development finance. We help developers realise their ambitions. We offer flexible funding solutions for professional developers across the UK undertaking residential, mixed-used, student, hotel and industrial developments.

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

£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.

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.

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 London Update: November 2017

The headlines from Nationwide, which claimed house prices in London had fallen -0.6% y/y in October, should be viewed within a wider context. London is comprised of 33 different boroughs and house price growth would have varied greatly across them.

Although the Land Registry data lags behind the market, it can still be used to view the stark differences in performance across London, and to highlight why we shouldn’t have a knee-jerk reaction to headlines stating a -0.6% fall in London house prices.

The latest data to end September 2017 showed a marked difference in recent house price growth across the 33 boroughs, with some performing well and others seeing a correction. The largest falls in price remained contained within the prime central boroughs of the City of Westminster, City of London, Kensington and Chelsea.

London House Price Growth: 3-months to September 2017

Source: HM Land Registry

House prices in the 3-months to September 2017 also fell in Bromley, Barnet, Brent, Enfield, Lambeth and Hammersmith and Fulham. However, in several boroughs, house price growth was strong, including Hackney, Camden, Lewisham, and Redbridge.

And whilst the deterioration in house prices picked up pace in September 2017 in some of the areas mentioned above, in boroughs such as Lewisham, Redbridge, Haringey and Croydon, the data suggests price growth accelerated in that same period.

The correction in prices have been driven on the most part by the political uncertainty from the fallout of the EU referendum. The complexity of Brexit has become increasingly apparent. This has been combined with increases in stamp duty, and now concerns about further interest rate rises which has further lowered the consumers appetite for borrowing, and this has been felt across the capital.

London House Price Growth: 3-months to September 2017 and August 2017

Source: HM Land Registry

The chart below shows the rolling 12-month house price growth in the 3-main prime central areas of London and inner and outer London. Kensington and Chelsea, City of Westminster, and the City of London all continued to see a deterioration in values in September however, the falls in the City of London were much smaller than in previous months. The recent adjustment in the City of London could have signalled the start of a much wider London correction. The chart highlights that back in late 2007, the City of London started to record a price correction before the rest of London, which subsequently followed a few months later.

Rolling 12-month growth London house prices, %

Source: HM Land Registry

Meanwhile transaction volumes remain weak across the whole of London, with the September dataset showing little improvement in activity. Brexit and poor consumer appetite for debt continue to hold back activity.

London change in transaction activity: 3 months to July 2017 vs 3 months to July 2016

Source: HM Land Registry

The key trends impacting London house prices

  • Whilst new instructions have been falling across the country, London new instructions reportedly increased during 4 of the last 6 months with “a relatively smart pick-up cited in both July and August” (Source: RICS UK Residential Market Survey). However, London new buyer enquiries remain weak.
  • Steep stamp duty charges continue to have an impact on transactions at the top end of the market.
  • Changes in rules for mortgage lenders to buy-to-let investors with more than 4 properties will find it hard to raise finance
  • International buyers are still attracted to the London market and this has been boosted by depreciation of sterling. Savills have reported that the high-end market will bounce back once the uncertainty of Brexit has settled.
  • Help-to-buy continues to play an important role in London. Since Q2 2013 8,813 properties have been bought in London under the Help to Buy: Equity Loan scheme (source: DCLG). The announced extension of this scheme should have a positive impact in London.
  • In the year to end-June 2017, 518 planning permissions had been granted for major residential schemes in London. This was an 18.3% increase from the year to June 2016 (source: DCLG).
  • However, according to the DCLG housebuilding statistics, only 16,620 new dwellings have started in London in year to June 2017 which is the lowest number of starts over a 12-month period since 2012. (in the 12-months to June 2016, there were 20,860 new starts)

Contains HM Land Registry data © Crown copyright and database right 2017. This data is licensed under the Open Government Licence v3.0.

Will they, won’t they? What to expect (or not) in the Autumn Budget

The Autumn Budget is almost upon us and, we have been mulling over what important changes we expect the Chancellor to make.

We anticipate that there will be a change to the way Stamp Duty is structured: the publication of Theresa May’s White Paper earlier in the year identified a broken housing market, and coupled with this and the slowdown nationally in transaction volumes off the back of political and economic uncertainty, change to stamp duty would be a logical next step to fix this.

What we think is unlikely, but not off the table completely, is that there will be any big adjustment at the top end of the market, in the +£1 million category. A small reduction in the charges at the prime end could have a big impact on liquidity, however this is probably not where the Chancellor will be focussed.

A more plausible scenario is another stamp duty holiday for first time buyers, similar to that between 2010 and 2012, when properties below £250,000 were exempt from stamp duty. A move like this is unlikely to have much impact in London where average property prices are £483,568, according to HM Land Registry, but could help improve liquidity in the rest of the UK.  A stamp duty holiday together with the continuation of Help to Buy, will benefit this important part of the housing sector.

There have also been calls for the Government to remove stamp duty entirely for older homeowners, to encourage people to downsize. It’s hard to see how this could be implemented but supporters say this would help increase the supply of family sized homes. A guise of this in conjunction with further stimulus for increasing housing supply, rather than just supporting demand, may be at the forefront of the Budget. For example, the government could give corporate tax reductions to encourage developers to deliver new housing in certain areas where there is a particular supply and demand imbalance.

Lastly, in a bid to win back some popularity amongst the younger generations, we anticipate a probable shake-up of student loans, something that would help support the student sector.

Watch this space…

Maslow Capital’s Lending Portfolio Update

Maslow Capital