Shawbrook Bank has expanded its financial backing for Magnet Capital, a specialist development finance lender, increasing its existing funding line to £25m ($32.37m).
The full terms of the transaction include a £25m line, of which £17.5m is committed over a three-and-a-half-year term.
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The additional funding from Shawbrook will aid Magnet Capital to continue its expansion.
Magnet Capital has so far focused on development schemes with unit sizes between one and four, but now eyes bigger deals as it grows.
Company co-CEO Sam Howard said: “Our relationship with Shawbrook has coincided with a strong period of growth for our business.
“In that time, we have redeemed well over 100 deals and, with the increased level of funding provided by this deal, look forward to furthering this upward trajectory.
Based in London, Magnet Capital focuses on supporting smaller builders and developers.
The company first collaborated with Shawbrook in 2018 with a facility worth £5m.
Since that time, the facility has increased fivefold to £25m while Magnet Capital redeemed over £60m of loans.
Shawbrook speciality finance director Luke Randall said: “Magnet Capital is a strong business in the development finance space who have continued to demonstrate robust growth during our partnership despite the macroeconomic challenges present in the last half a decade.”
“At Shawbrook, we take our existing relationships seriously and deals like this are a testament to our team’s ability to grow the support available to a business as they themselves continue to expand.”
In January 2025, Shawbrook paused new applications for its asset finance facilities, to focus on product expansion.
