Shawbrook Bank acquired the peer development finance business of RateSetter, which includes more than 100 new active developer clients and its development finance team.
The total facilities of the development finance loan portfolio amount to Â£ 167 million.
Terry Woodley, Managing Director of Development Finance at Shawbrook, said: âThis is a fantastic acquisition that complements our existing development finance operations.
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âOver the past four years, we have consistently responded to the financing needs of established regional real estate developers, enabling us to create a development finance business that has subsequently grown rapidly in size, reputation and confidence.
âCustomers in this market need specialized and tailored financing products, delivered consistently and by experienced people who understand the dynamics of a construction and the wider real estate market.
âThe RateSetter business was built on meeting the needs of real estate developers in a key sector of the market that remains underserved by traditional lenders. Naturally, this expands the market opportunities for the Bank, and we are delighted to welcome the RateSetter Development Finance team and new clients to Shawbrook.
Woodley added: âOur ambition is to become the lender of choice for UK specialist SMEs. Applying our specialized lending principles and high levels of service to an immediately adjacent segment of the development finance market, where loan amounts typically start at Â£ 1million, we expect the acquisition of l he RateSetter activity rapidly generates both scale and synergies.
âI look forward to working with the team and continuing to build Shawbrook’s reach and reputation in this vital industry.
The addition of the RateSetter business, including the associated loan portfolio, will add more than 100 new active customers to Shawbrook’s existing development finance customer base.
The deal also increases the bank’s distribution capacity and reach with an experienced team drawn from RateSetter.
Peter Behrens, Commercial Director of RateSetter, added: âThis transaction demonstrates the enduring quality of RateSetter’s credit assets.
âI am delighted that our real estate finance team is able to move into a new home where they will complement the Shawbrook team and continue to grow the franchise they have built. “
Shawbrook’s development finance business offers facilities ranging from Â£ 1-30million to established developers looking to finance residential and mixed-use projects.