The property bridging and development lender, which provides finance for both residential and commercial properties, has run as a ‘family office’ with mostly private funds for a number of years.
Typically, KHK Capital funds projects to refurbish residential properties and split into multiple units, permitted development (PD) schemes to convert commercial property to residential, ground-up housing projects, and simple bridge loans.
The new funding will help it meet customers’ growing needs on a variety of projects including residential conversion schemes, PD conversions, ground-up builds and straight bridge loans.
Andy Kent, founding partner of KHK Capital, said: “Shawbrook is the ideal lender for KHK – they are responsive, easy to work with and understand our business; they give us the freedom we need to implement our own policies and respond rapidly and flexibly to our customers.
“We fund purchases, auction purchases and any type of refinance. KHK is a small and responsive team, directly controlled by the business owners and many of our repeat-customers like that we are responsive, flexible and easy to work with.
“We are seeing increasing demand from new and existing clients that respond to the way we operate and this new tranche of funding means we will be able to add significant value to our existing loan book.”
Jake Francis, associate director, Shawbrook Structured Finance, said: “We are very pleased to be providing KHK Capital with funding through this period of exciting growth.
“The business has a solid reputation with existing customers, which is fundamental at this time, and we are delighted to support the management team with the growing demand it faces in a sector we know well.”
Oliver Abel Smith, a partner at European law firm Fieldfisher, which acted for KHK Capital, said the financing demonstrated there remained a strong appetite for lenders funding in the property sector despite the effects of the Covid-19 pandemic.
“The financing demonstrates that firms like KHK are funding for future growth, which is a strong signal that the property sector remains attractive to lenders,” he added.
