Shawbrook Bank has acquired RateSetter’s peer-to-peer funded development finance business.
The deal includes the purchase of a development finance loan portfolio with facilities totalling £167m.
Terry Woodley, managing director of the development finance business at Shawbrook, said: “This is a fantastic acquisition and one that complements our existing development finance operations.
“Over the last four years, we have consistently responded to the funding needs of established regional property developers, enabling us to create a development finance business which has subsequently grown rapidly in size, reputation and confidence. Customers in this market require specialist fit-for-purpose funding products, delivered consistently and by experienced people who understand the dynamics of a build and the wider property market.
“The RateSetter business has been built by serving the needs of property developers in a key part of the market that remains underserved by traditional lenders. Naturally, this expands the market opportunity for the bank, and we are thrilled to welcome the RateSetter development finance team and new customers to Shawbrook.
“Our ambition is to become the UK’s specialist SME lender of choice. By applying our specialist lending principles and high levels of service to an immediately adjacent segment of the development finance market, where loan sizes typically start at £1m, we fully expect the acquisition of the RateSetter business to quickly deliver both scale and synergies.
“I’m looking forward to working with the team and to continue building Shawbrook’s reach and reputation within this vital sector.”
The addition of the RateSetter business including the associated loan portfolio will add more than 100 new active clients to Shawbrook’s existing development finance customer base.
Peter Behrens, RateSetter’s chief commercial officer, added: “This transaction demonstrates the enduring quality of RateSetter’s loan assets.
“I am pleased that our property finance team can go to a new home where they will complement the Shawbrook team and continue to grow the franchise they have built.”
