Broker turns lender with £85m fund to distribute

Broker turns lender with £85m fund to distribute


A London-based brokerage has turned finance provider after acquiring sole access to an £85 million fund.

Independent advisory firm


has been established as a brokerage since January 2007. Determined to develop its services, the company recently teamed up with asset management firm BL General Partners, and agreed to distribute their BL Secure Income fund.

Now Interbanc, who are the sole distributors of the fund, plan to boost the property market by launching three new strategically timed – and targeted – products.

Christian Kumar, Director of Interbanc, explains: “As banks become increasingly risk adverse, property professionals – whether in land, development, commercial or residential markets – are facing increasingly difficult times in sourcing funding for acquisition and development.”

Interbanc’s new products include; Interbanc Bridging, Interbanc Senior Development Finance and Interbanc Mezzanine Development Finance.

Interbanc Bridging:

With lending from £50,000 to £1,000,000 available, on LTVs of up to 100%, Interbanc Bridging aims to give fast funding for auction purchases, development gains (land and planning), refurbishment, commercial and residential transactions.

Interbanc Senior Development Finance:

With lending to £10,000,000 up to 65% GDV (first charge), Interbanc Development Finance, “provides the core funding professionals need to create value.”

Interbanc Mezzanine Development Finance:

With lending from £200,000 to £3,000,000, up to 90% of costs on second charge (mezzanine), Interbanc hopes the product will “provide a flexible solution for property developers.”

Commenting on their new role as funders, Mr Kumar says: "The key difference is we are now proprietary funders and are able, as independents with a lot of experience in property markets, to make lending decisions directly and quickly on behalf of the funds we secure.

“Unlike banks, we are not facing huge balance sheet losses, and are able to make commercial decisions understanding the needs and opportunities in the property marketplace.” 

Believing the threat of a double dip recession to be over, Mr Kumar deems the products’ launch well timed as the “cost of projects is cheaper, sub-contracting is cheaper, and with the right developer, the risk is heavily mitigated.”

The former Merril Lunch advisor, also points to the ‘Olympic effect’ one which he forecasts will aid the housing market recovery significantly.

A team of six, including three BDMs, Interbanc remain finance advisors still, with plans to launch more products and expand their team next year.

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