This will support Magnet Capital in providing finance to smaller builders and developers in the UK that are sometimes under-served by mainstream lenders.
The London-based lender’s relationship with Shawbrook began in 2018 when it provided a facility worth £5m. This has since increased to £25m and, over the seven-year period, Magnet Capital has redeemed over £60m worth of loans.
The additional funding will enable Magnet Capital to continue growing and focus on larger deals. The lender typically focuses on development schemes with between one and four units.
Some £17.5m of the £25m deal has been committed over a three-and-a-half-year period.
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.
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“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 of 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.”
Earlier this month, Shawbrook announced it had partnered with Hampshire Trust Bank to provide £65m to short-term property lender KHK Capital.
