UK property lender CapitalRise has closed its first residential development exit loan within four weeks of launching the product, after seeing over 100 enquiries on the day of launch, according to the firm.
CapitalRise expect to close a further four exit loans next month.
'With average selling times increasing, developers are holding completed stock for longer which is tying up their equity,' said Steffan Goold, head of lending at CapitalRise.
'Our development exit loans not only refinance existing debt, but can also provide much-needed equity release and allow our clients to move onto their next project.'
This first development exit loan will be used by a house builder to refinance an existing development loan, secured against a project in Warwickshire. It will also provide the developer with an equity release to allow them to start their next project sooner, the lender said.
Launched by the founders of international property developer Finchatton to simplify the process of obtaining development finance, CapitalRise has so far funded projects with a total gross development value of £160 mln.
These include London properties in Eaton Square, Grosvenor Square, and the Strand. Investors to the scheme can access the property-backed loans via an online platform.