A new short-term funding venture has been launched aimed at property developers and investors in Wales.
Cornerstone Capital is a new subsidiary of established firm Cornerstone Finance Group, a privately-funded commercial lender headquartered in Cardiff.
Using a new funding line from its parent company, Cornerstone Capital is offering short-term lending loans to property developers and private investors to finance new developments and regeneration projects.
It is advancing short-term bridging loans ranging between £25,000 and £250,000, with funds made available within 30 days of application.
In the first year it is forecasting lending £5m, with the aim of more than £25m-plus by year five.
In line with the bridging finance market interest rates will range from 0.65% to 2%.
It is expected 90% of demand in the first year coming from the Welsh marketplace with plans for UK-wide coverage in year five.
Cornerstone Capital has been launched by Gareth Morgan and Haydn Thomas, both board members of the Cornerstone Finance Group.
Chief executive Mr Thomas, said: “In the current climate there is a strong demand for property and the market is buoyant, with investors and developers looking at vast refurbishment and development opportunities here in Wales.“
“This, in turn, means that we are currently seeing demand for short-term lending at a three-year high post-Covid, with it showing no sign of slowing.
“Our business will bridge the gap in the Welsh market, plugging the demand for short-term loans, enabling property developers to further support the regeneration of areas in Wales, whilst helping the Welsh economy bounce back from the effects of the pandemic.