Just over a year ago the high-profile Candy property developer brothers diversified into short term lending when their investment firm CPC Group pledged to fund bridging lender Omni Capital.

Following a number of luxury multi-million prime London developments funded by big ticket Omni Capital loans, Alexandra Jones spoke to Christian Candy, founder of CPC Group, to find out exactly why the group decided to invest in the bridging industry and his view on the future of the short term alternative finance sector…

How did you get to where you are now? We’ve heard it all started with a £6,000 loan from your grandma for a flat in Earls Court…

My brother and I purchased our first flat in 1995 with a £6,000 loan from our Grandmother. We decorated it in our own style, lived in it for 18 months and successfully sold it on. It was at this point that we recognised there was a niche, at the top-end of the market, to supply properties that go beyond the typical luxury home. We established Candy & Candy in 1999 and built the company from there. 

Why did CPC Group decide to fund Omni Capital? Were you advised this was a great way of further consolidating your position in financial property services or did you identify the scope for expansion in the bridging market yourself?

CPC Group has maintained a strong financial position over the past few years, which has enabled the business to make a number of strategic investments, of which Omni Capital is a prime example. We noticed that there was, and continues to be, a huge gap in the market for quality short term funding. Omni Capital bridges that gap with a professional and efficient financing service offering short term loans to individuals and small scale developers, predominantly within the prime postcodes of central London. 

What are your future plans for Omni Capital? Are you planning to further delve into the mortgage market – we’ve heard rumours that the Candy brothers might be on their way to creating a bank… 

Omni Capital has already lent over £100 million in the first half of 2012 and increased its upper loan limit from £7.5 million to £25 million. The management team, led by Colin Sanders (CEO), will continue to develop Omni Capital into a multiple product business over the next two years.   

Do you think now is a great time to do this given the largely illiquid mainstream lending market?

This is precisely the time to seize the moment. Mainstream lenders continue to be distracted by a range of significant issues – some self-inflicted; some beyond their immediate control. The result is a lack of easily-available, affordable credit that is causing serious problems for individuals and businesses alike. 

Smaller, more flexible providers imbued with entrepreneurial flair, strong funding and an appetite to lend are superbly positioned to help fill this gap. Omni Capital has created a highly successful short term lending business and the perfect platform on which to build in the future. 

What’s behind the decision for Omni Capital gaining FSA authorisation? Is this a way to offer more mainstream lending facilities that banks generally offer?

Omni Capital is not presently regulated by the FSA but is fully-authorised by the OFT. Its management team will decide when the time is right to seek FSA-regulated status. 

How and why did you position Omni Capital in the market as a prime location high net worth lender? Do you foresee its lending criteria widening in the future?

As Omni Capital’s funding provider, CPC Group clearly has an interest in where, to whom and on what terms Omni Capital lends. Omni Capital is also no different from many other successful short term lenders who have chosen to focus valuable resources and expertise on London and prime areas of the South East of England.

However, strategic and tactical decisions regarding Omni’s core markets and lending policies – including changes to its criteria – are made by its highly experienced management team. They understand the lending landscape and how it works to best effect for the business and its broker partners. 

Omni Capital also enjoys a significant advantage over many of its peers through its in-house funding facility. With immediate access to substantial and guaranteed funds, Omni is able to entertain and complete deals other lenders cannot even contemplate. This is playing to its strengths, and one that has delivered significant success, evidenced by the £100 million lent in the first half of 2012. 

Could you tell us a little more about the launch of Omni Capital? There is widespread industry belief that the company effectively had a ‘false start’ when coming to market in early 2011 with the shake-up of its management and Liz Locke’s departure.

In recruiting Colin Sanders as CEO, Omni Capital has an industry thoroughbred at its head. In just over one year, Colin has built a new team, clearly defined the company’s product offering, established strategic partnerships for distribution purposes, and positioned Omni Capital as one of the UK’s most visible, respected and successful specialist short term lenders. 

A lot of bridging lenders fund refurbishment projects in prime locations; would Candy ever offer a dual service incorporating a bridging facility and high end design for a finished refurbishment?

Omni Capital’s clients certainly have access to the interior design and development management services provided by Candy & Candy should they require this.

In future would you look to lend beyond the UK property market to overseas investors?

Omni Capital’s current focus is to continue to grow and maintain its position as the number one short term finance lender in the UK. With the wide network of international contacts and capabilities of its parent company, CPC Group, lending to overseas investors may be something to consider for the future.