The commercial benefits of using JV finance to convert office space into residential property.

Office to residential
To address the shortfall in residential housing, the government changed the law on permitted development rights in 20131. The new legislation allowed developers to convert office space to residential use without needing full planning permission. While investing in a completely new housing development carries an element of risk – particularly if the market is stagnant and it’s difficult to attract buyers – if a solid commercial building already exists, the risks are lower and a conversion is more attractive to financiers ... Read more

Who is buying up London?

When the value of the pound depreciated by 10% in the immediate aftermath of the UK’s vote to leave the European Union, it shouldn’t have come as a surprise that foreign investors would continue their love affair with investment in prime London property. Qatar has invested around £30bn into London, making the country by far the most dominant force when it comes to foreign purchases. Qatar have invested in key London attractions such as the Olympic village, The Shard, Chelsea Barracks and ... Read more

Reditum Capital gets involved with charity as sponsors at WellChild Awards 2017

The Reditum Capital team headed over to the Royal Lancaster Hotel on Monday 16th October to celebrate the Well Child Awards 2017, hosted by WellChild in association with long-standing partners, GSK. We got involved and sponsored the 2017 Inspirational Young Person 15-17 yrs Award and had a table at the event where a group of us, as well as a number of people we do great business with, attended. It was a spectacular night where businesses, some famous faces (including WellChild patron Prince Harry) and some ... Read more

What are the biggest issues affecting the UK housing crisis and how can UK lenders help solve it?

Housing in the UK has become increasingly unaffordable. With property prices almost eight times household income levels across England and Wales, home ownership has fallen for the first time since census records began. Last year, Chancellor Philip Hammond declared that the government would set aside £3.7bn to address the UK's housing crisis, with the promise of building an additional 140,000 homes for sale or rent by 2020.   This sentiment was backed by the Conservative government's White Paper which denoted the housing crisis as ... Read more

Who is right for a bridging loan?

The total size of the regulated bridging sector was estimated at £4bn in 2016, up from £1bn at the time of the financial crisis in 2007. Increasing uncertainty and rising house prices have driven up demand for more flexible financing solutions, and for those looking for short-term access to funds, bridging loans can be a good solution. Bridging loans are used for a variety of reasons, by everyone from homeowners to businesses. Homeowners often use bridging loans when selling their house to ... Read more

London’s position on the global property market

Between January and March this year, almost £5bn worth of commercial property transactions took place, according to CBRE. This marked the biggest quarterly total since late 2014. Despite after almost a year of Brexit unease and the emergence of a shock, snap election and an even more unpredictable result of a hung parliament, London commercial property remains a central focus for investment. Whilst uncertainty has led to a temporary slowing of investment into areas outside the capital and UK commercial prices remain 23 ... Read more

Bridging the gap between lender and developer: Why relationships matter It’s not surprising that as traditional lenders are hitting the brakes on funding, the provision of capital has become increasingly more diverse as conventional options dry up. Now with political instability, the once adorned quality of the British property market is seemingly abandoning its post. Lending in the UK will shift from a purely transactional model to a relationship focused approach as overseas investment will most likely stall for hesitation and typical lenders will become increasingly more tentative to complete deals. It’s ... Read more

Global Hotspots: is Spain on the comeback trail?

The 2008 financial crash shook the Spanish real estate market, with aftereffects seen both overseas, and over a decade later. The world financial crash halted the pump of capital into the Spanish economy and as a result, caused a stunt in property developments. With hindsight, it has become obvious that the confidence of overseas and local investors, and lenders, wavered. However, buyer confidence is finally growing in Spain with a number of foreign nationals looking to move there permanently or to buy a ... Read more

Mezzanine loans 101

What is a Mezzanine Loan? One of the key questions posed in property development is: “Exactly what is mezzanine finance?” To most in the industry, it’s clear – many a deal can only be completed thanks to the existence of mezzanine arrangements, but to those on the outside - or new entrants - it could be misconstrued as a complicated instrument. But It really is not. Simply put, mezzanine loans are a financing option that allows developers to spread financial exposure whilst doubling the return ... Read more

Will hard Brexit benefit real estate?

The immediate effects of Brexit on real estate were always going to be predictable. Deals fell through, buildings were withdrawn and house prices froze. Markets hate uncertainty. Now though, a clearer picture of what Brexit means is beginning to form as Theresa May’s government lays out a plan that is increasingly beginning to look like a ‘Hard Brexit’. Those who feared the UK would leave only in name have been reassured by a zero-tolerance approach to freedom of movement. This will carry ... Read more
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