Shore Capital Group Limited (“Shore Capital” or the “Company”) – Puma Property Finance secures £200m institutional funding commitment
Shore Capital, the independent investment group specialising in capital markets, fund management and principal finance, is delighted to announce that its fund management arm, Puma Investments, (“Puma”) has secured a new funding line of up to £200 million from funds advised by RoundShield Partners LLP and affiliates (“RoundShield”) for deployment in its Puma Property Finance business.
Puma Property Finance provides first charge secured lending to UK property developers, funding projects across the UK with loans of between £3 million and £30 million.
As well as backing professional developers of residential schemes, Puma has significant experience in specialist sectors, including hotels and leisure, retirement living, care homes and supported living units. The business offers three core loan products: stretch senior development loans; pre-development bridge finance for site acquisition; and post-development exit finance.
Puma already advises Puma Heritage plc on the deployment of the funds it raises from private client investors into UK development loans. The addition of the institutional commitment from RoundShield, will enable Puma to continue to respond to the significant demand it is seeing for development finance on competitive terms and will enable the business to invest in its infrastructure, including its high-quality, experienced lending team.
For its role in originating, executing and managing loans Puma will receive management and transactional related fees on loans executed over a four year period. As part of the arrangements, the progressive deployment of the funding line will entitle RoundShield to acquire a stake of up to 25% in a newly incorporated subsidiary, Puma Property Finance Ltd. In addition, RoundShield may be entitled to additional payments on exit, dependent on the returns achieved by it during the life of the transaction. Driss Benkirane and Max Leeb, Managing Partner and Director of RoundShield respectively, will join the board of Puma Property Finance Ltd.
Commenting on the new funding line, David Kaye, Co-Chief Executive of the Company and Chief Executive of Puma, said:
“We are delighted to have secured a significant funding line for our property finance activities. There are many high-quality real estate opportunities across the UK unable to access financing from traditional sources. This new partnership with the excellent team at RoundShield will enable us to continue to scale-up our activities with experienced developers to deliver both residential schemes and projects in specialist sectors including hotels, retirement living, student accommodation and care homes.”
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This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
David Kaye, Co-Chief Executive
+44 (0)20 7408 4050
Grant Thornton UK LLP (Nominated Adviser)
+44 (0) 20 7383 5100
Montfort Communications (Public Relations)
+44 (0) 78 1234 5205
About Shore Capital
Shore Capital is an AIM quoted independent investment group. Founded and majority owned by entrepreneurs, for three decades Shore Capital has been helping entrepreneurial businesses reach their full potential, find committed long-term investors and develop into significant enterprises. The business offers innovative corporate advice; a leading market making business; some of the most respected investment research available in the UK; and a diverse range of high-quality investment opportunities, including its hugely successful VCTs and principal finance activities.
The Group is based in Guernsey, London, Liverpool, Edinburgh and Berlin. Shore Capital Stockbrokers Limited, Shore Capital and Corporate Limited, Shore Capital Limited and Puma Investment Management Limited are each authorised and regulated by the Financial Conduct Authority. Shore Capital Stockbrokers Limited is a member of the London Stock Exchange.
About Puma Investments
Part of Shore Capital Group, Puma Investments is an award-winning fund management business which supports growing SMEs and professional property developers across the UK. The business has an established track record of achieving attractive returns for investors and the businesses it supports. Its business divisions include:
Puma Property Finance: providing finance to property developers and real estate investors across the UK. The platform offers first charge development loans, refurbishment loans, pre-development bridges and development exit loans across residential, office and hotel development schemes as well as assisted living and care homes.
Puma Private Equity: supports profitable businesses with a clear vision for growth. It focuses on supporting strong management teams with robust business plans that generate high-quality revenues, investing equity or a combination of equity and debt. Capital is provided for a range of uses, including development and expansion, product development and buy-and-build strategies.
Listed Equities: Puma offers a discretionary portfolio service of AIM stocks that seeks to deliver long term growth whilst mitigating Inheritance Tax as the portfolio is intended to qualify for Business Property Relief (BPR), which takes effect after two years from the acquisition of qualifying AIM stocks.