OakNorth Bank completes £20m loan-on-loan facility to Ultimate Finance Group to support growth in bridging lending

  • Ultimate Finance Group, the specialist asset-based lender, is part of Tavistock Group, the private investment organization founded by Joe Lewis;
  • Ultimate Finance Group has completed over £90m of bridging facilities since its inception in 2016, with a spread of clients across the UK;
  • Since completing its first loan-on-loan facility in 2015 – a liquidity line of £3m to an alternative bridging lender – OakNorth Bank now boasts over £300m of loan-on-loan facilities within its portfolio.

OakNorth Bank – the UK bank powered by OakNorth – has completed a £20m loan-on-loan facility to Ultimate Finance Group, the specialist asset-based lender.

Founded in 2002, Ultimate Finance Group is a specialist asset-based lender that has been part of Tavistock Group, the international private investment organisation with over 200 companies across the world and a strong expertise in real estate, since 2015. Ultimate Finance Group has completed over £90m of bridging facilities in the last four years, with a spread of clients across the UK. The capital from OakNorth Bank will help support Ultimate Finance Group with its fast-growing bridging loan book, providing vital short-term funding to enable property developers and investors to complete projects and have the breathing space to secure sales or long-term finance.

Since its launch five years ago, OakNorth Bank has completed over £300m of loan-on-loan facilities, including: a  £25 million fund finance deal with ICG-Longbow Senior Secured UK Property Debt Investments, a £10.5m transaction with RM Secured Direct Lending, and a £30m transaction with Hilltop Credit Partners.

Commenting on the deal, Josh Levy, CEO of Ultimate Finance Group, said: “Bridging finance is a significant and vital source of capital to the UK property market, particularly given the funding void caused by current market conditions. We are delighted to partner with OakNorth Bank to support the next phase of our growth, with a clear match between our service-led proposition, that prioritises speed and flexibility, and OakNorth’s strengths. We see a clear need for bridging finance in the market and look forward to working closely with the team at OakNorth Bank to take advantage of the opportunities ahead, aided by OakNorth’s deep understanding of the property market.”

Alex Rimmer, Director, Debt Finance Director at OakNorth Bank, said: “Loan-on-loan facilities allow us to access different clients and geographic locations which we might not have access to typically, so will continue to be a key growth area in our portfolio. There is a huge gap in the market for facilities below £35m such as this one, so this creates a significant opportunity for lenders like us. Despite ongoing economic uncertainty due to COVID-19, the UK property sector has fortunately remained stable with both property prices and demand up year-on-year. With a successful track record over the last four years and strong backing from Tavistock, Ultimate Finance Group is in a prime position to take advantage of this at a time when many of its peers are having to pull back.”

ENDS

Notes to editors

About OakNorth Bank plc

OakNorth Bank provides fast, flexible and accessible debt finance (from £500k to £50m) to fast-growth businesses and established property developers / investors. It has debt finance teams in London, Manchester, Bristol, Birmingham, Leeds and East Anglia.

Since its launch, the bank has:

  • Lent over £4.5bn, directly helping with the creation of 15,000 new homes and almost 20,000 new jobs in the UK;
  • Raised deposits from c.144,000 savers;
  • Supported several hundred businesses across the UK with the debt finance to pursue their growth ambitions.

It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Visit wordpress-test-website.oaknorth-it.com for more information.

Contact

Valentina Kristensen, Director – Growth & Communications: [email protected] / [email protected] / 0757 234 9009

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