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European law firm Fieldfisher has advised property bridging and development lender KHK Capital on an extension of up to £22.5 million to its existing £25 million funding line from UK savings and lending specialist, Shawbrook Bank.
The amendment to the facility, which was signed on 29 April, brings in Hampshire Trust Bank PLC (HTB) as a new syndicate member alongside Shawbrook. The facility has been increased to £35 million on a committed basis, with availability for a further £12.5 million on an uncommitted basis.
KHK Capital has extended the facility in response to strong demand from borrowers seeking short-term finance solutions in the residential and commercial property sectors.
The company typically funds projects to refurbish and reconfigure residential properties into multiple units and Permitted Development (PD) schemes to convert commercial property to residential dwellings, as well as ground-up housing projects and simple bridge loans.
Due to its proximity to its customers and the market, owner-controlled KHK Capital has the flexibility, knowledge and appetite to fund purchases, auction purchases and any type of refinance with a nimbleness and efficiency valued by borrowers.
Oliver Abel Smith, partner at Fieldfisher, who led the legal team acting for KHK Capital on the extension of its financing facility said:
"We are pleased to have assisted KHK Capital on securing this extension to its funding facility to support its further growth.
"Despite a number of economic uncertainties, the performance and strategic decisions of our bridging lender clients indicate that appetite for short-term finance remains high, particularly given moves by traditional lenders to tighten their criteria for providing loans."
Andy Kent, founding partner of KHK Capital, said:
"We are encouraged by the strength of demand for our services, which prompted us to seek this extension to our financing facility with Shawbrook and new syndicate member, Hampshire Trust Bank.
"We are proud that the speed, flexibility and property know-how in our business keeps our professional customers coming back to us again and again. We expect that this new funding line will enable us to continue to grow responsibly and serve our customers’ needs.
"We are lucky to have two excellent funding partners in Shawbrook and Hampshire Trust Bank, who both understand this market and recognise the potential we are here to serve."
Luke Randell, Associate Director at Shawbrook’s Structured Finance Team said:
“Having provided their first institutional line in 2021, we have been impressed with the growth KHK Capital has experienced during this time.
"Recognising the continued demand for their services, our team moved quickly and welcomed Hampshire Trust Bank into a syndicated facility to support KHK with an increased funding line that will enable the business to assist more customers.”
Paul Maurici, MD Wholesale Finance at HTB, said:
“Our aim at HTB Wholesale Finance is to support exciting lending businesses continue on their growth journey.
"KHK is a great example of this. The team has built a strong reputation, an excellent customer base and is seeing great traction across the market. We are delighted to have worked with the KHK management team and Shawbrook on this transaction.”