London developer secures £4.2m funding from Manchester’s Assetz Capital

Assetz Capital has backed London property firm RAA Developments with £4.2m worth of funding.

The Manchester-based peer-to-peer lender said RAA, which focuses on acquiring and developing properties in metropolitan areas, will use the seven-figure boost to develop 12 homes in the capital.

Four residential sites in the Brockley area will be developed using a £1.9m facility. An additional £2.3m will fund eight sites in Sutton.

Mark Davidson, regional relationship director at Assetz Capital, said: “Everyone is aware of the housing shortage in London and how this brings a challenge to prospective buyers in the region looking to get on the property ladder.

“With this in mind, it is important that lenders make funding available to developers looking to boost new builds in the city.”

He continued: “RAA Developments is a fantastic business, building high quality houses in the South, and we are proud to support its latest venture. This deal indicates a strong start to the new year and we will continue to provide vital funding to other ambitious developers across the UK.”

The transaction follows a £1.98m deal in December that saw Assetz Capital back Liverpool property firm Mitty Group, in a project to deliver two residential and leisure sites in Merseyside.

RAA Developments chief exec Andrius Augunas commented: “Assetz Capital was incredibly supportive of our proposition, and with this funding, we are able to build 12 state-of-the-art homes just outside of the capital.

“We were entirely new to peer-to-peer lending, but Assetz exceeded all expectations and delivered two excellent facilities in a short timeframe.”

Andrius added: “The speed of delivery and specialist knowledge of the team places Assetz Capital above any lender I have previously come across, and I look forward to continuing our work with the firm.”