The wealth management and mortgage specialist Tier One Capital has secured a Â£ 6.5million revolving credit facility from Shawbrook Bank for the TOC Property Backed Lending Trust (PBLT).
The credit facility aims to ensure that the fund listed on the main market of the London Stock Exchange has the necessary capital resources to continue supporting residential and commercial property developers in the North and Scotland.
The new agreement strengthens the ongoing relationship between Shawbrook Bank and PBLT, which recently unveiled its latest investment strategy.
PBLT shareholders recently voted to give the fund more flexibility to support property developers, particularly in the North East and Scotland.
PBLT says the key priority of its updated investment strategy is to improve the ability of North East and Scottish home builders to meet government targets of building 300,000 new homes each year.
Shawbrook Bank provides loans to property developers and announced earlier this month that it has provided Â£ 1 billion in financial support to 230 individual projects, providing 3,500 residential homes and apartments, over 600 business units and 1,000 student rooms.
Ian McElroy, President and CEO of Tier One Capital, said: âShawbrook’s extensive experience in the real estate development industry makes them the ideal partner as we respond to a significant increase in the industry. “
âThere is also an appetite from investors, who have accumulated significant financial resources during the economic break caused by the Covid pandemic, to support real estate developments, especially in the residential sector in the current climate. “
He adds: âThrough our collaboration with a financial institution of such caliber as Shawbrook Bank, we are able to provide a financial structure that meets the objectives of LTBP shareholders.
PBLT has defined a new sustainable dividend policy, which aims to deliver 4p per share per year to shareholders (a current yield of over 4.5% per year) with the possibility of an additional special end-of-year dividend depending on the financial performance of the period.
This will be a 33% increase from the 3 pence per share returned during the fiscal year ended November 30, 2020.