Sancus Lending Group has secured a significant expansion of its funding capacity following the extension and enlargement of its existing facility with Pollen Street Capital.

The specialist property lender, listed on AIM under the ticker LEND, announced that legal agreements have been signed to increase the size of the facility from £125 million to up to £200 million.

The term of the facility, originally agreed via subsidiary Sancus Loans Limited, has also been extended and will now run for at least five years from the date of the revised terms, expiring no earlier than 19 June 2030.

The group said the move would provide “significant additional funding capacity” to support its ambition to expand its property-backed lending activity across the UK, Ireland and the Channel Islands.

The expansion of the senior facility comes alongside further support from its majority shareholder, Somerston Group. Sancus confirmed that £1.5 million of preference shares have been issued in Sancus Loans Limited to Somerston Fintech Limited, a Somerston subsidiary.

These preference shares, which carry a 15% cumulative coupon and mature in November 2026, form part of the £10 million junior capital commitment first announced on 30 January 2025.

Following the latest issue, £5.6 million remains undrawn from that commitment. According to the company, the new junior capital will be deployed to strengthen Sancus Loans Limited’s ability to support one of the Group’s existing funding lines, further enhancing its loan book growth strategy.

Sancus has focused on expanding its lending capabilities in recent years, with a particular emphasis on structured property finance.

The latest developments mark a further step in that strategy, with backing from both institutional and shareholder sources enabling the Group to scale more aggressively in its chosen markets.