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Omni Capital completes £20m ‘super bridge’ loan

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  • 16/10/2012
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Omni Capital completes £20m ‘super bridge’ loan
Short term lender Omni Capital has completed a £20m bridging loan, a deal the firm is describing as its first ‘super bridge’.

The bridger completed the loan on a high-end residential development in Surrey, introduced by Weybridge-based brokerage Alburys Property Finance.

Funding for the project had stalled after its original funding partners withdrew from the project. The bridging loan allowed original lenders and site staff to be paid and for a new developer to be brought on board.

Omni says it one of the biggest bridging loans ever completed in the UK.

The firm structured the loan on a compound interest basis, with the loan being repaid as each residential unit is sold. Despite the size of the deal, Omni said that the LTV ratio was consistent with the industry average.

Colin Sanders, chief executive officer of Omni Capital, said: “Very few bridging lenders have the funds, appetite and resources to contemplate, let alone complete, a deal of this size and complexity. We have and we’re in the market for more.”

Elsewhere in the bridging sector, Dragonfly Property Finance has announced it has redeemed more than £200m in loans since the firm launched in late 2009.

The firm revealed in an interview with Mortgage Solutions last month that it was increasingly lending on more than its core bridging products, with Dragonfly now revealing it has completed a deal on a anaerobic digestion plant.

Jonathan Samuels, CEO, Dragonfly Property Finance, commented: “For us to have passed £200m of loan redemptions in such a short time period reflects not just the huge demand for short-term finance but the changing demographic of the people who are using it.

“For many borrowers, short- and medium-term finance has evolved from being the loan of last resort to their first port of call.

“With mainstream lenders still ultra-cautious, people have inevitably turned to alternative finance providers and it is a trend we expect to continue in the years ahead. The monopoly of the mainstream banks is no more.”

Dragonfly said it currently has funding lines of £300m with a medium-term target of £1bn.

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