A specialist UK property lender has secured backing to underwrite a £1 billion mortgage fund.

Laxfield Capital, the commercial mortgage origination, investment management and advisory business has announced the launch of a new UK commercial lending programme.

The programme will invest up to £1 billion in UK commercial mortgages over the next 24 months.

The real estate arm of the Government of Singapore Investment Corporation (GIC) has provided initial investment in the programme.

GIC is Singapore’s $100 billion sovereign wealth fund and will underwrite the loans issued by Laxfield Capital.

The Laxfield Capital programme will provide individual loans ranging between £40 million to £185 million, five to seven years duration and up to 75 per cent LTV to a wide variety of commercial property sectors, including office, retail, industrial, residential and leisure across the UK.

The programme will provide whole loans and syndicate up to 75 per cent of each mortgage to other preferred investors.

GIC will retain a substantial junior investment in each loan.

Adam Slater, Managing Director of Laxfield Capital, said: “The Laxfield Capital programme will fill a gap in the large-ticket commercial mortgage sector as few lenders are able to provide a whole loan in excess of £100 million at up to 75 per cent LTV, particularly outside core locations or prime assets.

“I believe the programme will have a considerable impact on the UK property market with a significant injection of liquidity at a time when traditional sources of funding are contracting. This is a good example of how alternative sources of capital are successfully entering the space traditionally dominated by banks. The investment from GIC is a strong vote of confidence in our programme and in UK commercial mortgages, and provides an ideal market entry point for other investors seeking access to quality mortgage investments.”

Chris Morrish, Regional Head of Europe, GIC Real Estate, said: “We look forward to our partnership with Laxfield Capital, which has demonstrated strong capabilities in loan origination and has generated value for commercial mortgage investors. The programme complements our existing direct junior debt investment strategy which we will continue to pursue.”

Laxfield Capital currently manages £1.1 billion of commercial mortgage assets on behalf of global institutional investors, including life companies, banks and a sovereign wealth fund.