Creating investor access into a significant UK market opportunity
Real estate bridging and development finance
Experienced, practical team
- BGAMG brings together a highly experienced founding team
- Expertise across real estate, financing, legal and compliance
- Established origination partner with £250m in loans written in four years with zero capital lost
Clear mission
- Create a simple path for investor access to a low risk, high security asset class
- Solve the dislocation between retail bank policy and real estate development needs
- Initiate with a £200m open-ended fund, ultimately deploy capital across the UK real estate market
Focused initial niche
- Initial geographical focus on credit opportunities in bridge and development financing in London and the Home Counties
Market inefficiencies in real estate credit
In the UK, there are significant capital flow impediments in the real estate credit market. Particularly inefficient is the unregulated credit area of bridge and development finance for commercial capital projects.
Broad policy application
Traditional lenders apply policy on a blanket basis without analysing the strengths/weaknesses of individual deals or acknowledging the repayment capability of sustainable businesses.
Lending vs asset imbalance
Existing lenders will often not lend over £1m, even when asset security supports this.
Limited focus
Existing lenders will often only lend with a limited spectrum of internal experience, avoiding niche market sectors.
Market structure
The market is dominated, but not supported, by large retail lenders. This imbalance creates demand for alternative lending structures.
Speed to market
In the UK, traditional lenders are often slow to move and have arduous application processes; property deals can be lost while waiting for decisions.
Investor barriers
Lack of access pathways for investors to invest in the asset class and lack of expertise makes it difficult for institutional investors to directly participate.
Opportunity in market dislocation
Bridge and development finance in commercial capital projects offers a 'lender-friendly' environment
Predictable payment of investor coupons due to loan structuring and less exposure to regular defaults.
Bridge and development mortgages against real estate reduce risk; mortgages have strict lending criteria and LVRs.
Lender protections including covenants and lender rights with simple and straightforward recourse and remedies processes for the lender.
Current fund focus
- Real estate bridging and development credit market
- Commercial capital projects
- London & Home Counties
- Fast deployment of capital using established origination partner
Future opportunities
- Extend to commercial capital projects across the UK
- Continue to focus on real estate bridging and development sector
- Potential for further investor participation to increase fund size
Investment mandate
- Loan range: £500K - £15M
- Average loan: £2M
- Loan term: 6-24 months
- Max LTV: 65%
- Borrower rate: 9.6-12% p.a.
- Mortgage: 1st charge
- Full recourse loan
- PG/debenture
- Defined exit route via sale or refinance
- Geographical focus: UK, specifically London & Home Counties as initial focus
The value we add
At BGAMG, we bring not only 40 years industry experience across finance and property, but also deal flow relationships with existing loan infrastructure.
This means we can deploy capital faster than many other funds, ensuring your investment gets to work as quickly as possible.
Origination through portfolio partners
In-depth sector knowledge
Professional investment experience
Wide industry network