Cogress lender commits to Hackney development worth over £3m

Niche lender, Cogress has completed on a £3.29m, high-geared mezzanine deal with Gold Section Developments.

The 21-unit residential scheme is the company’s third deal with this development partner, and takes the gross funds deployed by the lender to £172m.

Cogress specialises in providing equity and mezzanine funding to SME developers. Its post-Brexit investment strategy centers on residential and mixed-use developments in Zones 2-5, as well as opportunities in the regions.

Cogress has committed £172m to 52 UK projects to date, and holds a portfolio including developments in Greater London, Bristol, Brighton and Reading.

Cogress’ head of origination, Callum Ferguson, said: “We are very much developers who have gone into financing, not financiers who have gone into property.

“We actively partner with our developers, with each assigned a Development Analyst who acts as their direct contact should they need support. Whether that means assisting them in refinancing a deal, advising on planning requirements, or facilitating introductions to service providers, Cogress is available around the clock.”

Launched in 2014, Cogress has reportedly won two exits in Hackney. One, a Gold Section Development of 43 residential apartments and 20 commercial units, and the second a mixed-use in scheme in E9.

Callum added: “This year marks a significant turning point for Cogress. We are investing heavily in key strategic areas of the business as we scale up and move beyond the startup phase.

“On the lending side, we have £70m to deploy to SME developers in 2019 - those with developments between £8m and £80m GDV - as either Joint Venture Equity, Traditional Mezz or Stretch Mezz.

“While we will continue to do deals in the Greater London area, we also have a significant pipeline of regional projects, and we intend to step up our activity in these areas over the next 12 months.”

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