Précis Capital launches UK development lending platform
Development lending platform Précis Capital Partners has launched with the backing of international investment management firm TowerBrook Capital Partners.
Précis Capital will deliver financing solutions to real estate developers for projects across the UK, predominantly for residential and other living asset classes.
The platform will originate, underwrite and manage whole loans of £50m-plus to finance the construction of residential for sale, build to rent, retirement living communities, co-living spaces, student accommodation and other residential assets, with a view to providing up to £1bn of development financing a year.
Précis Capital is led by its three co-founders Randeesh Sandhu, Daljit Sandhu and Karen Dunstan, an real estate finance lawyer who will act as general counsel.
As co-founders of real estate financier and asset manager Urban Exposure Plc, Randeesh and Daljit Sandhu extended approximately £2bn of development financing from 2010 onwards.
Dunstan previously served as general counsel of Urban Exposure, after starting her career as a lawyer at King & Wood Mallesons, Herbert Smith LLP and Charles Russell Speechlys.
The wider Précis Capital team comprises real estate finance, private equity and banking professionals, including Frank Strauss as chairman and Susan Geddes as director and credit committee chair.
Strauss was formerly global CEO, private and commercial banking on Deutsche Bank AG’s management board.
Geddes was formerly managing director, structured real estate finance at Santander UK Corporate Banking, and managing director, head of structured finance with Alvarium RE; she spent 19 years at the Bank of Scotland, latterly as head of real estate finance.
Précis Capital will seek to integrate sustainability and social impact into its product and service offering. The lending platform will actively measure the social value impact of the projects it finances.
Alongside traditional development finance products, it will offer loans tailored for sustainable building practices by developing green finance products – aligning loan terms to the achievement of pre-determined sustainability performance targets.
Randeesh Sandhu, co-founder and CEO at Précis Capital, said: “A chronic funding shortfall has been among the biggest contributory factors to the structural imbalance within the UK housing market we are seeing today.
“Increased volumes and more efficient delivery of private development financing are a fundamental prerequisite for bridging the gap between the longstanding and fast-growing demand for housing in the UK and the supply currently delivered by homebuilders.
“We are extremely excited to be drawing on our experience and partnering with TowerBrook, with their proven history of backing specialist financing platforms such as Hayfin Capital Management and Ladder Capital, to meet this challenge and address the market need.”
Daljit Sandhu, co-founder and COO at Précis Capital, said: “There is a significant opportunity for a new purpose-led approach to lending in the current market.
“2021 is a pivotal moment for the UK’s construction industry and we aim to help the industry transition towards Net-Zero targets with sustainable build standards, adopt technology and embrace Modern Methods of Construction.
“We want to support the economic recovery, the government’s Green Agenda and the ‘levelling up’ policy programme.
“We have assembled a team that has experience of working at, or alongside, many of the UK’s most respected developers and investors, as well as an extensive track record of successfully structuring large and complex real estate debt transactions.
“Whilst we will not let up on the speed, flexibility and certainty required from a trusted lending partner, we also hope to pioneer new products and practices with and for our clients.”