New finance product aims to shake up the property market

A CHANNEL ISLANDS lender is aiming to shake up the property market with a new finance product for developers after securing a £15m. investment.

Adam Dawson, Reto Finance. (30060124)
Adam Dawson, Reto Finance. (30060124)

Reto Finance said the investment from Foresight Group would support the launch of a real estate development finance product for developers matched to as and when they needed to draw down on funding for construction projects.

It would also allow Reto Finance to offer increased flexibility on its existing real estate bridging product.

‘This additional line of liquidity allows us to broaden our real estate offering, meaning that we can continue to support local property developers across the Channel Islands with tailored funding solutions,’ said Reto chief executive officer Adam Dawson.

‘We look forward to playing a part in supporting the growth of the property markets in both Jersey and Guernsey.’

The new product offered an alternative to traditional mortgages that might not cover some developments through institutional investors at a sensible cost, he added.

With demand for housing outstripping supply, he expressed hope that the new financial product would help shake up the property market and help islanders to get their own home. This could include commercial to residential developments.

Foresight Group, a listed alternative investment manager, structured a senior debt facility tailored to suit the flexibility required by the company’s new product. Investment into lenders such as Reto Finance also aligned with its regional approach to investing by offering support to local economies and businesses unable to access traditional forms of financing.

‘We are excited to support the growth of Reto Finance and, in turn, make an impact on the real estate market across the Channel Islands,’ said Foresight private debt manager Oliver Bates.

He added that the partnership built on a previous investment into Reto Finance from Quilam Capital.

Reto Finance was launched in 2019 following a buy-out from Shawbrook International by Quilam Capital and said it had since served hundreds of consumer and SME borrowers across the Channel Islands.

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