Development finance lender Magnet Capital has secured additional financial support from its long-time funding partner, Shawbrook, to extend its services to more customers and fuel further growth.
Magnet Capital, which specializes in supporting smaller UK builders and developers often underserved by mainstream lenders, initially partnered with Shawbrook in 2018, when a £5 million facility was provided. Since then, the partnership has flourished, with the facility increasing fivefold to £25 million.
Over the course of their seven-year relationship, Magnet Capital has redeemed over £60 million in loans, consistently demonstrating excellent lending practices and financial management even amid challenges such as the COVID pandemic, rising interest rates, and 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.
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.
