Property finance asset manager LendInvest has announced a £150m lending collaboration with two of Britain’s biggest banks, just weeks after its £255m IPO on London’s AIM index.
The new tie-up is geared towards financing UK property entrepreneurs and will see the British banks provide funding for short-term mortgages through LendInvest’s digital platform.
It’s the first time Barclays, one of the UK’s largest mortgage lenders, has worked with LendInvest, while HSBC has an existing partnership with the platform.
Ahead of its IPO on AIM a month ago, LendInvest told potential investors it was “uniquely placed to lead the digital disruption of the property finance sector”.
The new partnership with the two UK retail banking giants comes as a significant boost to the firm so soon after its IPO, as it aims to grow its short-term lending services.
LendInvest is an asset management platform that uses funds from high net worth individuals and institutional investors including JP Morgan, CitiBank and National Australia Bank to provide short-term, buy-to-let and development mortgages to the property industry.
After listing on London’s AIM for 186p a share last month, LendInvest’s shares have surged to 211p, as of this morning – up 0.96 per cent on Friday’s close.
In exchange for funds, the platform says it offers investors a “highly attractive asset class”, and its funds under management have risen to around £2.7bn from £375m in 2017.
“With a number of major milestones under our belt, this latest financial partnership only adds to the momentum the business has been gathering over the past twelve months,” said Rod Lockhart, LendInvest’s CEO.
“There is a real recognition that the technology and platform we have built allows institutions to access the highest quality assets in the market.”