Commercial Property Lending

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With interest rates increasing and banks retreating from the commercial property lending market, the returns available in making relatively safe loans are potentially more attractive than investing in the underlying property. Some £24 billion of commercial property loans are reported as due to expire in the next 12-18 months.

In response the Group has launched a new division to make senior secured loans against commercial property, targeting loans of:

  • Relatively high LTV of 65%;
  • Interest-only (no debt amortisation);
  • Fixed rates of interest ≥9% pa;
  • Interest cover ratio of ≥1.15;
  • Duration of 3 years or more;
  • Target loan size up to £20m;
  • Asset class agnostic.

If you are looking to refinance your existing loan or are looking to buy a property, please contact:

Email: fpropseniorlending@fprop.com, alexander.cayzer@fprop.com, jeremy.barkes@fprop.com & martin.pryce@fprop.com

Tel: 020 7340 0270

7 June 2023
Property Week: First Property Group launches new loan platform for commercial property

Property fund manager and investor First Property Group has launched a senior loan platform to finance and refinance commercial property. The business will focus on making interest-only loans of up to £20m at a maximum of 65% loan-to-value ratio.

22nd June 2023
Property EU: UK’s First Property to enter real estate lending market as banks retreat

Virna Asara writes: First Property is looking to offer senior facilities secured by any existing commercial real estate assets including office, retail, leisure, hospitality, care homes and logistics. The loans would be offered with a maximum leverage of 65%, a minimum term of three years and up to 15, a fixed interest rate and no debt amortization required. ‘We believe this is a very compelling loan product because it fully responds to what borrowers need these days,’ Habib noted. ‘I think there is going to be a lot of stress for borrowers and since we are property specialists, we can take a much more robust view on loans and not only look at the financial parameters like a bank does.’