Ballymore Group has agreed its first loan since exiting NAMA at the end of 2016 with Investec Structured Property Finance.
The deal – an £18m loan secured against two light industrial sites in Silvertown – also represents a major milestone for Investec Structured Property Finance.
It is the lender’s first investment loan since 2006 as the company has been focused in recent years on providing development loans typically between £5m and £75m across a range of sectors including student housing.
The lender will look to do more similar deals this year as part of a drive to grow its product range and diversify its loan book.
“During 2017 we will look to originate more investment financing, alongside growing the development loan book,” said Mark Bladon at Investec.
Ballymore’s long term plan for the industrial sites is to develop residential schemes on them. It will look to secure planning for redevelopment, but in the meantime, it expects to deliver rental growth thanks to tenant improvements and lease regears.