Continued Success for Arbuthnot Commercial and Real Estate in 2022

The Commercial and Real Estate Finance team at Arbuthnot Latham are pleased to announce a period of continued growth across the first three quarters of 2022.

Over the first nine months of 2022, lending reached £168m and further credit approvals totalled £70m. Deposits also grew significantly for the same period. As a whole, the bank passed £3bn of deposits held for the first time, as detailed in its interim report.

Arbuthnot Latham’s private and commercial offering provides clients with financing across a range of asset classes for residential, commercial investment, and development, as well as deposit products, main banking clearing facilities, and wealth planning for individuals and businesses.

The Real Estate lending team has successfully structured a variety of loan types, including those for purpose-built student accommodation (PBSA), private rented sector, residential investment, and development-to-let.

By shifting to longer term facilities and catering towards new lending over the last two years, the Commercial and Real Estate Finance team have been able to play a crucial role supporting borrowers looking to develop and hold properties. Despite macroeconomic events causing uncertainty in the market, the bank maintained its lending appetite by funding projects such as residential portfolios with larger debt requirements, a feature that continues through 2022 into 2023 as we enter another period of possible uncertainty with the cost-of-living crisis and recession.

2022 has seen further growth in the team, with sector expertise growing within Build-to-Rent (BtR), Private Rental Sector (PRS), PBSA and Multi Unit Freehold Blocks (MUFB). In addition, the dedicated professional banking team has a new head, Liam Hutchings, who drives the continued growth and excellent service offered to this sector.

Looking ahead, the team is focused on expanding its geographic footprint across the UK, creating new roles and providing specific expertise in Real Estate as well as the Professionals sector.

Tony Eden, Head of Commercial Banking and Real Estate Finance, said: “Macroeconomic uncertainty has been a challenge for all, and the team’s passion in delivering excellent service and supporting our clients is something that I am extremely proud of. We now seem to be lurching from one crisis to another with the cost-of-living and significant rise in base rates. Therefore, this continued support for clients will be paramount.

“We will continue to lead with our relationship-first approach, offering tailored advice, financing, and banking solutions to ensure the best outcome for all parties. We are still looking to support existing and future clients through this period. However, we may need to take a more conservative view with regards to Loan-to-Value as the main driver for lending, as the fundamental issue is how much cash is being generated on the asset to service the debt. With the increase in base rate this cash will continue to be eroded with every increase, therefore it is important to work proactively with the bank when trying to secure funding. We have seen strong growth in 2022 year-to-date, and we are still committed to supporting current and future clients for the right level of debt.”

Find out more about our Real Estate offering.