Property finance firm nets £500 million backing

A property finance firm has secured a facility worth up to £500 million to expand its lending capacity and support more SME housebuilders.

London-based Quantum Development Finance has agreed a long-term facility with Goldman Sachs, increasing its available funding from £200 million to as much as £700 million.

It says the backing will allow Quantum to support larger loans and a wider range of schemes, from initial acquisition through development to post-completion investment facilities.

Founded in 2023, the lender provides development and bridging finance to SME housebuilders across England and Wales, with loans of up to £35 million.

It has financed the development of 4000 homes and passed the £1 billion funding milestone this summer.

Quantum has also expanded its offering during the past year to include operational real estate such as Build-to-Rent, purpose-built student accommodation and co-living.

Its 16-strong Bermondsey team currently oversees 125 live projects, ranging from acquisition loans to five-year operational real estate facilities.

Oliver Thompson, co-founder and chief executive of Quantum Development Finance, said: “Goldman Sachs’ approval of this facility is a positive signal for the Quantum team as we focus on building an alternative credit platform with bank-level operational rigour. 

“It’s also a huge endorsement of the team we’ve built and the discipline we bring to every deal and operational running of the business.

“For our clients and partners, these large and long-term commitments from established funding partners, Goldman Sachs and AB CarVal, are a clear signal that Quantum has the appetite and readiness to keep backing high-quality developers and property investors, at every stage of their journey – whether that is their first scheme with us, or their fifth.”

Funds managed by AB CarVal have backed Quantum since its launch as a shareholder and primary funding partner.

Rob Sinclair, principal at AB CarVal, added: “We’ve supported Quantum Development Finance since day one, and this expanded facility represents an important next step in the platform’s growth. 

“Quantum has built a differentiated lending model around deep borrower relationships, disciplined underwriting and the ability to flexibly support clients with agility across the lifecycle of projects. 

“The quality of Quantum’s existing loan book is high and the fact that 80 per cent of their borrowers are repeat or direct clients stands out. 

“The expanded funding and product set should allow the team to build on that model and even better serve the needs of UK property developers and investors.”

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