Specialist lender Assetz Capital has successfully funded two residential refurbishment projects in Northern Ireland – the first loans the lender has delivered there outside of the government backed CBILS scheme since the start of the pandemic – as the company continue its growth in the region.
The refurbishment loans, which would not have qualified for funding under the CBILS scheme, have both been funded by Assetz Capital retail investors from their Manual Lending Accounts. This has allowed two local property developers to renovate properties with a view to selling or letting out the units.
The first project funded is for Kent Homes, an established property developer, which has borrowed £129k to develop a residential home within the East Belfast area. The borrower has already delivered five successful schemes by Assetz Capital in the region, totalling £5.5m across 18 houses. Work will start immediately to refurbish the end-terrace property, which is estimated to take three months. The refurbishment requires no detailed planning permissions as there are no alterations required to the structure of the home.
The second project is for borrower Rugby Avenue, located in Bangor, who also renovates residential dwellings within the Belfast area. Owner David McGowan is a well-established property developer and repeat borrower with Assetz Capital. The property sits within an affluent residential area in coastal town Bangor, located 13 miles east of Belfast City. The borrower plans to use the £227k loan to immediately start work on refurbishing the single detached property and then intends to sell in six months-time.
Jonny Kirk, relationship director at Assetz Capital said: “We were impressed with how quickly the loans were filled by our investors. The appetite is clearly there to get the UK economy moving. Both borrowers are experienced SME developers, we were able to be flexible with the terms offered and support them quickly. It’s great to be able to fund important projects like this.’
The loans have not only provided investors with opportunities to invest their capital in a proven model, but also to provide much needed stimulus to the local economy. This comes at a critical time for the housing market, which has seen a boost in recent weeks as the country begins to discuss the removal of Covid-19 restrictions. The projects also indicate that a wider economic growth spurt could be just around the corner and that there’s much cause for optimism in 2021.