LendInvest Mortgages has announced a new long-term development finance funding partnership with AB CarVal and HSBC.

The collaboration has launched with £175m of senior capital committed by HSBC, supported by funds managed by AB CarVal and LendInvest.

LendInvest said the move has been designed to scale its development finance proposition and accelerate the delivery of new homes across the UK. The firm said the deal will evolve its existing institutional development finance funding into a larger, more flexible vehicle capable of supporting a greater number of SME developers and a broader range of project types.

To date, LendInvest’s development finance platform has financed more than 700 projects, with loans of typically between £1m and £5m.

“This partnership is an important milestone for our development finance franchise,” said chief capital officer and managing director of mortgages at LendInvest, Hugo Davies.

“AB CarVal brings deep expertise and significant firepower; HSBC brings the institutional strength and continuity that has underpinned our success to date. Both bring a deep history of supporting SME developers. Together, this creates a sustainable, long-term funding framework designed specifically for the SME developers who deliver the homes the UK urgently needs.”

Managing director with AB CarVal, Robert Sinclair, commented: “We are delighted to be partnering with LendInvest and their development finance team on this funding.

“Together with HSBC, this structure creates a compelling opportunity to scale and enhance our existing track-record of investment into segments of the UK housing market where demand continues to outpace supply.”

Global head of structured finance at HSBC, Victoria Lindsell, added: “LendInvest continues to demonstrate their ability to originate and manage a strong portfolio of development loans within the UK market.

“HSBC are pleased to continue our partnership with LendInvest and to support them in the next phase of their ambitious growth plans alongside AB Carval.”

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