TUSCAN EXPECTS TO LEND £50M OF COMMERCIAL BRIDGING BUSINESS IN 2022
In an exclusive interview with Bridging & Commercial, Colin Sanders, CEO at Tuscan Capital revealed that the lender has the capacity to complete £50m of commercial bridging loans this year.
In January, the finance provider launched its commercial bridging proposition after renewing and extending one of its original institutional funding facilities and securing a new private funding partnership.
The commercial bridging product offers loans from £100,000 to £5m at up to 65% LTV, on terms between three and 18 months.
The offering is available for purchase, refinance or capital raising for retail and office units, as well as warehouses and industrial premises.
“For us, it was important to go into 2022 with not only a high capacity to write lots of business, but with the ability to do lots of different things and, now with our commercial facility, we’re able to offer something slightly different that’s clearly in demand,” Colin told B&C.
While the additional investment played a big part in the lender’s decision to enter the commercial bridging market, it was also the gap in the market for commercial bridging finance that pushed Tuscan Capital in this direction.
“Even though our facility prior to this launch was fairly limited from a commercial perspective — [we could previously do partial commercial in a mixed-use deal if there was a residential element in it] — we saw a lot of commercial inquiries that, in our opinion, represented reasonable risk that we would’ve liked to support, but we just didn't have the funding facility for it at the time,” Colin explained.
Following the launch of the new proposition, Tuscan Capital has received over £200m worth of commercial bridging loan enquiries to date — one of the main reasons Colin feels confident the business will hit, and possibly surpass, the £50m lending mark for commercial bridging alone.
“The good news is that we don’t have a limited capacity facility, so if we find that there is an absolute avalanche of commercial deals coming through, there won’t be a situation where we’d have to turn people away,” Colin said.
However, he emphasised that the lender will continue to provide bridging finance for all types of cases, including residential, development exit, and refurbishments.
Overall, Tuscan Capital aims to lend in excess of £100m across all propositions this year.
In addition to its lending targets, the finance provider aims to expand its regional focus with new hubs, in addition to its existing ones in London, Manchester, and Birmingham.
“We are open-minded about other southern-based regional offices, but this will be driven by finding the right calibre of candidate.”
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