CBRE

CBRE aims to underwrite £75m of bridging per quarter




When asked what its lending targets were for the next few months, CBRE Debt Investment Advisory told Bridging & Commercial that it would be happy if it could underwrite £75m of new bridging finance a quarter.

The subsidiary of the CBRE Group acts as fund managers for a number of investors lending to the UK real estate sector and the capital it represents is a mixture of both public and private funds which total over £1bn.

It first entered the bridging market around 12 months ago after providing a short-term loan secured against a hotel in central London.

Since that loan, CBRE Debt Investment Advisory has expanded its bridging finance offering to encompass all major asset classes and increased its maximum loans size.

Recently it has focused on providing the most competitive product it can to increase the amount of bridging finance loans underwritten.


The types of bridging finance CBRE Debt Investment Advisory is offering:

  • all asset classes – residential, commercial, development, land
  • senior first charge lending
  • maximum 75% LTV
  • up to £40m debt quantum
  • interest only.

“We are property-focused lenders and price bridge loans on the quality of the property and viability of exit,” said Robert Pritchard, associate director of CBRE Debt Investment Advisory.

“We are, therefore, not looking to stretch the pricing on every deal just to hit a specific return.”

Robert explained that it does not just offer bridging and that it also provides both commercial and residential development finance.

“We find that an attraction to many of our borrowers is that we will be able to support the development of a property, meaning they do not need to find another lender to refinance the bridge.

“This can sometimes result in us providing a lower rate on the bridge loan if we want to fund any development.”

Robert added that it has found it can lend at higher debt amounts than most lenders.

“A bridge of £25m would not be an issue for us to underwrite on a bilateral basis.

“For borrowing requirements above this, we have the capacity to club our investors to achieve loan amounts of up to £50m.”

CBRE Debt Investment Advisory works strictly for capital, not borrowers, and operates long-term lending programmes for its investors.

To find out more about CBRE Debt Investment Advisory’s offering, contact Robert Pritchard by email or on 0207 182 2936.

 

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