Travers Smith LLP has advised Reto Property Finance Limited (Reto Finance) on its £15m investment from listed alternative investment manager, Foresight Group.
The investment will support the launch of a real estate development finance product and will allow Reto Finance to offer “increased flexibility” on its existing real estate bridging product.
Reto Finance was “keen to develop” a new product to support local property developers and help to address the housing shortage in the Channel Islands.
The senior debt facility has been structured to suit the flexibility required by the new product. With this investment, Foresight has now committed over £165m of capital to the alternative lending sector.
Reto Finance was launched in 2019, following a buy-out from Shawbrook International by Quilam Capital, and it serves consumer and SME borrowers across the Channel Islands.
The Travers Smith team was led by finance partner Charles Bischoff with support from senior associate Daniel Domb, associate Hannah Ramsey and paralegal Jorja Hills.
Adam Dawson, CEO of Reto Finance, said: “We are grateful for the support of Travers Smith on this investment. This additional line of liquidity allows us to broaden our real estate offering and develop a market-leading development finance product.
“We look forward to playing a part in supporting the growth of the property markets in both Jersey and Guernsey.”
Charles Bischoff, finance partner at Travers Smith, said: “With previous investment from Quilam Capital, Reto Finance has fast become a pre-eminent force in the alternative lending space.
“We are excited to have advised on this latest transaction that will support its further growth and look forward to seeing the impact that this new product will have on the real estate market across the Channel Islands.”