Development finance lender Magnet Capital has received further financial backing from existing funding partner, Shawbrook to expand its reach to more customers and support further growth.
Based in London, Magnet Capital specialises in supporting smaller builders and developers in the UK market who are often left underserviced by mainstream lenders.
Magnet Capital initially partnered with Shawbrook in 2018, when the specialist lender provided a facility worth £5million. Since the initial deal the two lenders have strengthened their relationship, growing the facility fivefold to £25 million. During the 7-year partnership, Magnet Capital has redeemed over £60m worth of loans and continued to demonstrate excellent lending practices and financial management throughout a period marked by the Covid pandemic, high interest rates and a steep rise in inflation.
The additional funding from Shawbrook will allow Magnet Capital to continue expanding. Whilst the lender has thus far focused on development schemes with a unit size between one and four, Magnet Capital will look to undertake larger deals as it continues to grow.
The full terms of the deal include a £25m line of which £17.5m is committed, over a 3.5 year term. Shawbrook was retained as the funding partner due to the strong relationship built between the two parties and Shawbrook's ability to provide flexible terms that suit the business goals of Magnet Capital.
Sam Howard, Co-CEO of Magnet Capital, said:
"Our relationship with Shawbrook has coincided with a strong period of growth for our business. In that time, we have redeemed well over 100 deals and, with the increased level of funding provided by this deal, look forward to furthering this upward trajectory. We are thrilled to continue our journey with Shawbrook who constantly demonstrate their experience and expertise in the field when working with us.”
Luke Randall, Director, Speciality Finance at Shawbrook, said:
“Magnet Capital is a strong business in the development finance space who have continued to demonstrate robust growth during our partnership despite the macroeconomic challenges present in the last half a decade. At Shawbrook, we take our existing relationships seriously and deals like this are a testament to our team's ability to grow the support available to a business as they themselves continue to expand. We look forward to watching Magnet Capital’s continued success in the future.
Fieldfisher acted for Shawbrook on the deal.
