Santander to launch £100M scheme for SME housebuilders
Santander Corporate Commercial is to launch a new scheme worth 100m to support SME housebuilders. The scheme will contribute to addressing the challenges of the UK housing market, as well as creating jobs.
Recent surveys have identified that one of the primary constraints on the SME House Building sector is the availability of finance. Santander Corporate Commercial will be able to provide an innovative stretch funding package (a combination of senior and mezzanine debt) for SME housebuilders which should help to increase activity.
The scheme, which will commence on 25th March 2015, is aimed at existing housebuilders with a successful track record. It will be headed up by Andrew Whelan, Managing Director, Regional Real Estate, who will be supported by teams in London and Manchester.
Steve Pateman, Head of UK Banking at Santander, said: “We are aware that many small house builders struggle to raise the equity required to support conventional bank debt; by allocating part our Breakthrough Growth Fund to this sector, we will be able to bridge some of this gap with a tranche of mezzanine finance that will hopefully allow many of these small housebuilders to build out their land banks and from there go on to develop more sites. This will benefit not only the housing market but also the broader UK economy.”
