First Property Group PLC on Wednesday celebrated the launch of its senior loan making platform, designed to help finance and refinance commercial property.

The London-based property fund manager and investor said the platform will focus on making loans of up to £20 million in value, up to 65% of loan to value, and interest only.

First Property argued that the higher loan to value and interest only aspect of loans made via the platform make them ‘close to unique’ in the current state of debt markets.

The capital for making the loans via the platform will be sourced from First Property’s own cash resources and third party investors.

‘Our move into senior secured commercial property lending via this platform is in response to a clear gap in the market created by higher interest rates and a retreat of traditional lenders, including banks,’ said Chief Executive Officer Ben Habib.

‘Our loan platform offers borrowers better terms than are typically available and investors in loans made on the platform a high rate of return. For these reasons it is a good time to be entering the market.’

First Property shares were trading 1.5% higher at 27.40 pence each in London on Wednesday afternoon.

Copyright 2023 Alliance News Ltd. All Rights Reserved.