Borehamwood, England-based real estate finance and investment firm, TAB, has finalised a private securitisation facility with NatWest and Atalaya Capital Management.
The facility, valued at up to £300M, aims to bolster TAB’s lending products. Both NatWest and Atalaya Capital Management are supportive of TAB’s focus on providing ESG-focused mortgage loans, emphasising sustainable and responsible business practices.
Atalaya Capital Management, in particular, is strengthening its collaboration with TAB by offering mezzanine notes for the facility, indicating its ongoing commitment after a previous £120M revolving credit facility in 2022.
TAB is on track to have a £500M loan book in 2024.
Providing short-term bridging loans for property projects
Founded in 2018 by Duncan Kreeger, TAB fills the gap in property project financing left by rigid traditional lenders. It offers flexibility in bridging loans, considering diverse borrower needs, funded by various sources from institutions to individuals.
The company’s platform delivers customised finance quotes swiftly, adapting to real-time market shifts. TAB Market provides diverse investment products, like TAB Lending and TAB Property, enabling UK property investment even for inexperienced investors.
Founder Duncan Kreeger, with almost 50 years of lending experience, has overseen more than £2.5B of new loans and managed a loan book of over £400M.
The company’s small, skilled team in North London emphasises collaboration, enabling them to write over £180M in loans in three years.
Capital utilisation
According to TAB’s founder Duncan Kreeger, the private securitisation facility signifies a strategic move, enhancing their ability to offer more competitive and flexible financing options for both short-term bridging finance and long-term mortgages.
This development follows the recent launch of their new commercial mortgage product, which prioritises sustainability and incorporates ESG criteria.
The product offers commercial loans ranging from £150K to £2.5M, terms from three to ten years, and a flexible loan-to-value of up to 65 per cent. “Borrowers can qualify for discounts of up to 1.25 per cent off a fixed exit fee of 2.5 per cent by satisfying ESG criteria.”
Kreeger adds, “The collaboration with NatWest allows us to not only meet the demand for competitive financing solutions but, in relation to the mortgage product, also to contribute to a more sustainable and resilient real estate finance landscape.”
“I am particularly excited about the extended partnership with Atalaya Capital Management, solidifying their commitment with mezzanine finance. Given how much we value this relationship, we are really pleased that their continued support demonstrates their confidence in TAB’s growth trajectory. Together with our strong private investor base, we are building a robust foundation for future success.”
Brief about the investors
NatWest believes in creating a better world. The firm empowers its 14 million customers in England and Wales, offering simplified banking through various channels including branches, 24-hour contact centers, AI, and an app.
The company uses their data proactively to assist customers during crucial life moments and actively contributes to the UK economy by lending more to British businesses than any other bank. Their Entrepreneur Accelerator hubs support future growth drivers across the country.
Speaking about the investment in TAB, Daniella Siretz, MD at NatWest says, “NatWest is pleased to support TAB both in the bridging space and with its new term mortgage product that encourages ESG-positive behaviour. Sustainability is a key focus for NatWest and we look forward to a successful and sustainable partnership with TAB.”
Brian Moore, Principal at Atalaya Capital Management adds, “Atalaya Capital Management is happy to deepen its partnership with TAB through the provision of further finance alongside NatWest. This is a significant step forward in our commitment to TAB, following our £120M revolving credit facility in 2022, consistent with our positive orientation towards TAB’s business model and outlook.”
New York-based Atalaya specialises in credit and asset-based investments across specialty finance, real estate, and corporate sectors. It works with institutional investors, focusing on markets underserved by traditional lenders.
The firm has over $14B in investments and expertise across various cycles and market conditions. Dyal Capital Partners holds a non-voting minority stake in Atalaya.