Travers Smith LLP has advised Shawbrook Bank Limited (Shawbrook) on the refinancing of a senior debt facility provided to specialist real estate lender, Pivot Finance (Pivot). The funding will be used to underwrite unregulated bridging loans and build out Pivot's bridging and development finance offering. The specialist lender also agreed a new £15 million investment from Quilam Capital.
Pivot has been providing short-term real estate loans since its launch in 2012 and has provided over £200 million across facilities secured against assets throughout England and Wales. Since the outbreak of the COVID-19 pandemic, Pivot has been more focussed on its existing clients and loan book, but will now be offering new products in response to favourable market conditions which have seen bridging loan volumes increase as a result of Government stimulus and a continued retrenchment of traditional high street lenders.
The Travers Smith team was led by Finance Partner Charles Bischoff with support from Senior Associate Tom Maclean, and Trainee Eleanor McCann. Travers Smith also advised on the original facility in 2018.
Warren Mutch, Senior Relationship Director at Shawbrook, stated "We are delighted to continue to support Pivot and to work with the Speciality Finance team at Travers Smith in doing so. The fact that we were happy to extend with Pivot again shows our commitment to the business and their desire to build out their development proposition, which will be key in providing liquidity to the much-needed SME developer market."
Charles Bischoff, Finance Partner added "Having advised Shawbrook in connection with the original facility in 2018, we are delighted to be a part of the relationship between Shawbrook and Pivot that is going from strength to strength. We hope that this continued financial support will contribute to Pivot taking a larger share of the bridging development finance market in 2021."
Quilam Capital was advised by Macfarlanes. Pivot was advised by Fieldfisher.