Together Financial Services has launched its inaugural securitisation facility for property development lending, the £150m ADALO Asset Backed Securitisation (ADALO).

The securitisation is designed to support development customers in helping to achieve the UK government’s target for building new homes.

ADALO will provide ongoing funding for loans secured against developments in England, Wales and Scotland, and will initially contain loans which previously formed part of the group’s senior secured notes security. The new facility complements the group’s existing seven public residential and four commercial real estate mortgage-backed securitisations (MBS), six private securitisation facilities, senior secured notes and banking syndicate facility.

The new facility, which matures in 2028, also creates additional headroom and further diversifies the group’s funding structure.

Mike McTighe (pictured), chairman of Together, said: “We are excited to announce the successful launch of our first ever securitisation for property development lending. This innovative new facility will provide support for our development customers in helping to address the UK’s housing shortage.”

Gary Beckett, group managing director and chief treasury officer of Together, added: “Since the start of our financial year in July, we have raised or refinanced over £2.4bn of facilities to support our growth plans. The launch of this unique facility further diversifies our funding profile and demonstrates Together’s strength and capability to deliver funding capacity to support our diversified product base.”