RAW Reports Significant Growth and Consistent Returns
The RAW Mortgage Fund's loan book has seen significant growth since the turn of the year; at the end of 2017 the number of Mortgage Loans stood at 89 with security held on property of £37.5m (GBP). Nine months later there are more than 140 Mortgage Backed Loans and the value of security held on property is £61m (GBP), showing steady growth of the loan book across the year.
The Fund has focussed on lending against high quality, but modest, modern property in Greater London with a number of loans in other key UK towns and cities. Exposure is largely on one or two bedroomed apartments that are easily let and in good commuting locations, however the Fund also lends against other forms of property, including detached, semi-detached and some terraced housing provided they are of sufficient quality as security for the loans. In recent months we have seen several new opportunities across England, including properties in Surrey, Kent and Berkshire, expanding capabilities to grow the loan book and increase diversity of property locations.
The Fund set out to ensure it maintained a maximum loan-to-valuation ratio of 50% across the loan portfolio, it has bettered that with an average loan-to-valuation ratio of only 45%, significantly more conservative than anticipated.
Tim Parkes, MD of RAW Capital Partners said, “This Fund has been, and should remain, a great preserver of capital, delivering very consistent returns to investors.”