Atelier has increased the maximum size of loan it can offer to professional property developers, as part of a strategic plan to grow the scale and variety of its lending across the UK real estate market.
Atelier has lent £400m since it launched in January 2020, and currently has £250m of assets under management.
With a total lending capacity of £500m, Atelier says it is adapting to the changing market conditions while maintaining its appetite for lending to developers working in the residential, student, care and commercial sectors.
Atelier’s maximum loan size has risen to £40m, up from its previous ceiling of £20m. The lender has also responded to feedback from its growing community of developers and intermediaries, adding increased flexibility and new options to its offering.
These include an extension of the maximum loan term to three years, and the introduction of its first ever variable rate loans linked to base rate. Atelier has also introduced new pricing for SME developers looking for the certainty of fixed-rate finance at 55% and 60% LTV, and maintained its terms at 65% and 70% LTV.
The lender has also kept all its fixed interest rates unchanged following the Bank of England’s recent increase to base rate, and will continue to do so until the end of the year.
Graham Emmett, joint CEO at Atelier, said: “Over the past three years, Atelier has cemented its position as an institutional grade lender, delivering £400m of development finance solutions and establishing strong relationships with our valued network of intermediaries and professional SME developers across the UK.
“We’ve done this by assembling an exceptional team of real estate finance professionals, and then investing in both our people and our technology to support high-touch, high-value relationships right across the real estate community.
“While the market is facing mounting headwinds, our strong liquidity profile and intelligent balance sheet management have allowed us to maintain our fixed rate offering at existing pricing, despite the Bank of England’s recent decision to raise base rate. Our appetite to fund well-structured development opportunities remains as keen as ever.”
Chris Gardner, joint CEO at Atelier, added: “Atelier’s strong growth is a testament to the skill and dedication of our team, and to the enterprise of our borrowers. We’ve invested in our brand and in understanding what customers want from their development lender of choice – a trusted, expert partner able to provide certain deal execution, a competitive interest rate and ongoing support, right through to the successful completion of their scheme.
“Right from the start, we’ve been determined that our finance should deliver more than just bricks and mortar. That’s why we’ve focused on funding developments that leave a positive legacy for their local community, and why we created the Carbonlite Challenge, our pioneering sustainable finance solution that incentivises developers to build greener, more sustainable homes by offering highly competitive rates of interest.”
