Bringing you live news and features since 2006 

Real estate fund

Montello launches real estate bridging finance fund


London based real estate bridging finance firm Montello Private Finance has launched the Montello Income Fund.

The fund will provide investors a return of 8.5 per cent per annum, paid quarterly.

Montello says the property market in the UK has fallen dramatically and is now showing clear signs of stabilising, particularly the residential market which the fund will focus on.

However, banks are still not lending freely into the marketplace, and even sound borrowers with good assets are finding that it can take months to obtain finance.

Montello provides fast access to capital to these borrowers.

“Prospective borrowers are seeing opportunities pass them by because they can’t access capital from traditional sources in a timely manner,” says Christian Faes, co-managing director of Montello.

The fund will focus on loans that are between one and 12 months in duration and secured against residential real estate in England, particularly in London. All loans will be secured by a legal first charge against the property in each instance; and a reputable independent valuer will certify that the loan to valuation for each loan does not exceed 75 per cent of the current market value.

The fund will be the only open fund in the UK that lends solely to bridging finance end-borrowers and directly takes first charge security (in the name of the fund).

The fund will be offered as a UK limited partnership with an associated exempt unit trust for Sipp and Sass investors.

The fund will be promoted through intermediaries and will be operated by Park Caledonia Capital.

The fund will be open-ended and investors can redeem their investment in the fund on a quarterly basis.

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by