10 Questions with Patrick Ruane of Bishopsgate

With development funding becoming an ever more profitable venture for independent lenders, there are those that have been providing significant tent poles within the industry for some time.  With high street lenders still refusing to lift endless restrictions that shackle crucial growth within the market, the independent specialist businesses continue to facilitate unprecedented demand, particularly with the housing market beginning to emerge from the depths of repression.  Bishopsgate Funding, based in Manchester, has been doing exactly that for some time and, by combining its small team of experienced professionals and personal service, the company has maintained a strong position in the industry for 16 years.

B&C’s Ian Walker spoke with Patrick Ruane, Director of Bishopsgate Funding, to find out a little more about the company, and what brokers can expect when approaching them.

B&C: First of all Patrick, tell us a little bit about your company, and how Bishopsgate came about?

PR: Prior to Bishopsgate, I was a mortgage and finance broker, and I specialised in sub-prime, commercial mortgages, bridging and development finance. I particularly enjoyed development finance as no two projects were the same. I then met an investor in 1997 who was looking to get into the bridging market, and we formulated a plan for a specialist development lending company, which was Bishopsgate, and cut our teeth on a handful of deals sourced through my brokerage. Following on from that early success - the company has grown from there.

What challenges does the development lending industry face at the moment?

PR: The property market, while it has improved, is still quite tough in some locations, with even well priced property taking some time to sell. The uncertainty this brings can lead builders to delay starting projects, and valuation reports to lack consistency. Whether to provide funding often then comes down to a judgment call by the lender, and having the ability to make individual case by case assessments has been one of the keys to our success.  

If you weren’t working within the financial industry, what would you be doing?

PR: I love traveling and seeing different parts of the world and their history and cultures. If I wasn’t doing what I do, I would definitely love to travel more - I’d take the book “1000 Places to See Before You Die”, and start ticking them off!

In terms of the company, what has been a particular highlight so far?

PR: Growing from a very small company to one of the market leading businesses in the development finance sector - and surviving the financial crisis of the last few years!

A recent survey from UTB revealed that many brokers would continue to use independent development lenders ahead of High street banks, even if they did begin to lend again - why do you think this is?

PR: Development deals can be rather complex and specialist, and are not really appropriate for box ticking-style underwriting, which banks have moved towards. Couple this with the fact that brokers have become generally disillusioned with banks and their ability to deliver over the last few years, and it is not really that surprising a finding.    

What is the most unusual project Bishopsgate has ever been asked to finance?

PR: A few years ago we asked to lend to restore a Scottish castle that had been in ruins for some 400 years. However, it wasn’t much more than a pile of rubble really and was fraught with planning problems, not to mention that it was located on the edge of a cliff overlooking the sea! We didn’t end up lending on that one.

What benefits does a specialist development lender bring over a high street bank?

PR: The fact that this is the only type of lending we transact, meaning that we can offer a depth of knowledge, experience and problem solving that would be difficult for a more generalized lender to deliver. We are a lender who very much looks for solutions rather than problems, meaning that as well as the run-of-the-mill development deals, we also fund some rather quirky development deals.

What does the future hold for Bishopsgate?

PR: Right now, with the lack of bank finance available to SME builders, lenders like Bishopsgate have a great opportunity to grow, and that is what we have been doing. Our brokers tell us that what we do, we do well, and so we intend supplying even more of same!

Being a development lender, where does the majority of your business emanate from, brokers or professional borrowers?

PR: The majority of our business is introduced by our network of brokers and intermediaries. Introducers are the lifeblood of the lending industry, and I especially value their professionalism and the key contribution they make to sourcing new clients for Bishopsgate. 

What would be your “Desert Island Disc”?

PR: If I were on a desert island I would need more than one song or I’d probably get fed up of it. I think it would have to be a classic jazz compilation. I like jazz because it is very mellow and relaxing.