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April 17, 2018
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Nearing completion, the Cherif (Barnes) Ltd housing development in Hampton Row, Barnes

Julian Hodge Bank reports continuing growth

The commercial lending team at Julian Hodge Bank is on track for a successful 2016.The bank has reported sustained momentum in real estate activity across its core markets - Wales, the South West and London – and also the wider UK.

The Cardiff bank has supported clients with a variety of investment, development and renewable energy projects, lending around £60m so far this year for the construction, purchase or refinancing of commercial property.

A further £10m has been lent to land owners building wind turbines in Scotland, Northern Ireland and south west England.

The market where Julian Hodge Bank is most active, mixed-use schemes, pre-sold or pre-let commercial property and well-located residential developments, shows continuing demand for funds.

Recent transactions include providing £10.7m to enable Ripon Investments to convert a Birmingham office block into 160 apartments. In London, Cherif Barnes Ltd has borrowed £18m to refinance and complete the building of nine town houses and 12 apartments in Barnes.

Other deals include lending £4.4m to a client to buy an office block in Ashford, Kent and £1.8m to assist with the purchase of the freehold of the River Island shop in Swansea.

The bank has lent £5m to refinance an out-of-town office portfolio in Cardiff and £5.2m for another client to buy office space in the city centre. Demand for student flats remains high – the bank having lent £5m for various student accommodation projects in Bristol and Bath.

In Scotland, the bank provided £5.25m to refinance a residential development in Cambuslang and, in Cornwall, Goodpath Ltd has borrowed £430, 000 to buy a Moss Bros outlet in Falmouth.

Kevin BeeversKevin Beevers, the commercial lending director at Julian Hodge Bank, said: "The last few months have been particularly busy and we have seen continuing demand for our real estate and renewable energy funding propositions.

"In working with experienced investors and developers, our team of senior bankers quickly review all sensibly-structured proposals and then provide each client with a bespoke funding package.

"As a bank that specialises in real estate lending, our goal has always been to be well regarded within our market sector and our growth across the UK shows that we are achieving this, " said Mr Beevers.

To facilitate continued growth across all areas of its business, this autumn Julian Hodge Bank moves to new offices at One Central Square in Cardiff.

Julian Hodge Bank lends £18m to Cherif (Barnes) Ltd

Julian Hodge Bank, the privately-owned Cardiff bank, has agreed to lend Cherif (Barnes) Ltd £18m to refinance and complete a residential development in Barnes, London.

Cherif (Barnes) Ltd, which is owned by Lord Beaverbrook, Christian Yates and Max Aitken, has built nine town houses and 12 apartments in an attractive residential scheme called Hampton Row.

The project was originally initiated in partnership with Ansgate PLC, a family-owned development company that has now exited in full as part of wider refinancing with Julian Hodge Bank.

A once-derelict site bought from Wandsworth council in 2013, Hampton Row now has a gross development value estimated at £32m, with apartments on the market from £650, 000 and houses from £2.4m.

The deal means Julian Hodge Bank has made a strong start to the year, having recently reported an increase in real estate lending in 2015, when it provided £110m for new deals, doubling the figure lent in 2014.

Gareth Davies who negotiated for the bank, said: "With momentum returning to the real estate market last year, the latest signs are that demand for funds is continuing.

"We are looking at a number of attractive proposals currently being put together by property investors and developers in London, the South West and Wales and hope to announce several of these in the months ahead.

Dunward Properties Refurbishment"We were particularly pleased to support this high-quality London development, our first with Cherif (Barnes) Ltd, which has turned an eyesore into a beautiful row of town houses and apartments that will only add to the appeal of Barnes as a great place to live, " said Mr Davies.

The scheme was brokered by Johnny Reich of Seaford Finance.

Strong growth at Julian Hodge Bank

Julian Hodge Bank has reported an increase in real estate lending in 2015 – with the 2016 pipeline showing signs of continued buoyancy.

The commercial lending team provided over £110m into new deals – double the figure for 2014 – as the bank saw strong levels of investor and developer real estate activity across most geographical areas.

Schemes included £11m for a permitted development rights (PDR) property conversion in central Birmingham, as part of the bank's increased focus on the Midlands market, as well as an £18m lend on a residential development in London.

In addition it has funded a number of student accommodation and mixed-use projects in London, Wales and the South West.

Around £30m specifically went into financing projects in Wales. These included Nextcolour's development in Swansea, where the former Mumbles cinema and amusement arcade is being converted into retail outlets.

Kevin Beevers

Kevin Beevers (pictured) commercial lending director at Julian Hodge Bank, said: "Among property investors and developers, real estate is viewed as a sound investment and we are seeing some exciting schemes coming forward.

"I'm very pleased that our commercial lending team continues to grow its business, improve its profitability and enhance its reputation through the financing of attractive investment assets and well-conceived development schemes with experienced and professional equity sponsors.

"This is making a strong contribution to the bank's profitability, as well as delivering a significant flow of work to the Cardiff professional services market, " said Mr Beevers.

Sectors which appear to be most active include student accommodation, hotels, new office development and the conversion of older property for residential or retail use.

The markets in Bristol and Bath specifically and the South West generally have been particularly busy over the last 12 months, where support has been provided for several residential and student schemes, mixed-use investment properties in Devon and Cornwall, and wind turbine finance across the broader South West.

Mr Beevers said that the bank will continue to be selective in choosing which projects and people to back.

"We are a funding partner for the proven and experienced investor/developer who values specialist, high-quality service combined with the approach and cachet of a private bank.

"In the last 30 years, Julian Hodge Bank has worked diligently to become a respected brand and trusted partner in the real estate world, funded entirely through retail deposits, which last year surpassed £800m.

"As real estate specialists, we aim to provide a private-bank style service with highly-experienced managers and communication channels designed to produce a professional and timely response.

"We feel we have the expertise and resources essential for success. We can lend up to £25m to an individual client across a range of real estate and renewable energy asset classes and we are looking forward to 2016 and beyond, " added Mr Beevers.

The bank will be relocating its head office from Windsor Place to One Central Square, a new office block in central Cardiff, during the summer. It has leased the entire sixth floor, comprising 16, 500 sq. ft., which will allow it to expand its activities across its various businesses.

Nextcolour Gareth Davies Paul Williams An artist's impression of Halebourne Group's Ridge development in Sunningdale, Berkshire
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