The funding is expected to boost MSP Capital’s growth in the development and bridging finance sectors and allow it to provide funding to housing developers.
The lines are made up of a senior-secured facility from JPMorgan of £200m and an additional £150m from its existing funder, Pollen Street Capital.
As well as MSP Capital’s retained funding lines with Pollen Street Capital and Shawbrook Bank, the lender has an increased funding capacity of £485m.
JPMorgan may also be able to provide an additional £350m of funding in the future, which could boost the lender’s funding capacity to £835m.
This comes as MSP Capital prepares itself for growth, following strategic moves such as the appointment of its first chief executive, Leigh Bartlett, and the relaunch of its five-year strategy.
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Bartlett (pictured) said: “These deals mark an important milestone for us and will be the driving force behind an exciting growth journey for the company, our broker partners and our customers.
“Securing these new funding lines from such reputable funders is a testament to the strength of our business and reputation among senior funders in the market, as well as our robust customer base and loan book pipeline.
“These new funding lines will further enhance our position as a respected lender, allowing us to lend more across the country.”
The transaction was supported by Interpath, acting as sole financial adviser to MSP Capital, with Travers Smith LLP serving as the firm’s legal counsel.
Nicky Hollamby, finance director at MSP Capital, added: “This successful outcome is the result of six months of hard work by the team. The £350m currently made available through these new funding lines, as well as the potential for more funds in the future, is an integral piece of the jigsaw for the future growth of MSP.
“Thank you to our funding partners, JPMorgan and Pollen Street, for their support and for demonstrating such a strong understanding of our business.
“A special thanks also goes to the teams at Interpath and Travers Smith LLP for their expertise and guidance throughout this process. The hard work of the entire team has been crucial in preparing the business for this growth, and we are proud of what we have achieved together.”
Supporting MSP Capital, the market and housebuilding
Nick Parkhouse, managing director and head of financial services transactions at Interpath, said the transaction was memorable because of the “exceptional market interest”, which “encapsulates how far the UK bridging and development market has come”.
Rob Tanna-Smith, managing director at JPMorgan, said: “As the UK grapples with providing houses for a growing population, further development relies on the availability of additional financing sources. This transaction supports MSP in its pursuit of growing the developmental and bridging finance markets and encouraging additional homebuilding.
“At JPMorgan, our scale, specialism and broad capabilities enable us to support initiatives like these, and providing MSP with this new funding line will underpin MSP’s existing portfolio of bridging and development loans, as well as the growth in their loan book over the next five years.”
