of a house into flats or larger deals where investors need several million pounds worth of development finance. Most in the market agree that


the past four years has seen mainstream lenders’ appetite to fund development deals dry up almost completely. That has provided lenders like Tiuta with the opportunity to do good quality deals in their stead. “We’re well funded and that has


meant we have the opportunity to do more of that sort of business,” says Nicholas. “It’s becoming a larger part of our book certainly and an increasingly important part. We’re quite comfortable doing this and have in house expertise to deal with developments. “What we won’t do is a large


scale tower block type deal in the middle of London. It’s case by case on loan size and it will always depend where our risk lies as a lender at the time. If the deal is a low loan to value and prime location then we’re happy to look at large loans.” Tiuta is still growing its book


and plans to increase the volume it lends by double over the next twelve to eighteen months, says Nicholas. Though the pair won’t disclose


concrete numbers Lewis says Tiuta did £16m worth of lending in June and not far off that in July. “We are doing a lot of lending


and we’re looking to continue that sort of ilk and grow to do more,” he says.


GrowInG the busIness Nicholas explains this ability to grow is in part down to Tiuta’s funding model. The lender is backed by private


investors and shareholders, a funding line from Clydesdale Bank and another from Connaught Asset Management. He adds that they are also in conversation with several other


“We have the appetite, infrastructure and knowledge to lend. But the appetite from mainstream bankers is lacking. Banks will tell you they’re in the market, you’ll offer them the opportunity and they won’t take it”


banks to provide additional funding lines in the future. This is a work in progress though, he acknowledges. “We have the appetite,


infrastructure and knowledge to lend,” says Nicholas. “But the appetite from mainstream bankers is lacking. It’s disappointing to be honest. “Banks will tell you they’re in


the market, you’ll offer them the opportunity and they won’t take it. I recently spoke to a bank and outlined various possible deals up to a million pounds and they said it was too small for them. “When asked what they did


want to do it’s to a corporate triple A client at a minimum of £200m. That’s not really lending in the market is it. There aren’t many of those around.” Nicholas says this conundrum


is frustrating but it presents Tiuta with opportunity as well. For example the lender is looking to launch a light commercial product imminently because there is a gap left by mainstream lenders unenthusiastic to engage with smaller investors.


soCIal medIa In the spirit of being ahead of


the game, Tiuta recently spon- sored a TweetMeet which Nicholas says was an unexpected success. “We thought there might be


about five people but there were nearly 200,” he says. “It was a great success and we picked up a lot of business from brokers through that.” Lewis agrees and says it was


also about reaffirming the lender’s brand and business appetite with brokers. “It allowed us to touch base with


brokers we knew already as well as new brokers and reaffirm our brand and position in the market place as well as what products we offer and what appetite we have to lend,” he says.


what next After a period of change it seems Tiuta is now clear what it’s about and has a defiant strategy to grow its loan book in the coming months. Many are felled by change, either


because they fail to recognise it and fail to adapt or because they simply fail to embrace it. Tiuta, both Lewis and Nicholas


say, is not about to fall into that trap.


BrIDGING INTroDuCer september 2011 31


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