Henley Property Finance (HPF), the debt focused venture of rapidly-growing Private Equity Real Estate firm Henley Investments, today completed on its first investment. HPF provided a £14.5 million stretch senior loan to Hencan Construction to enable the acquisition and development of a luxury 20,000 sq ft mansion development in Wentworth Surrey, England with an estimated post-completion value of £20-30 million.

HPF offers debt finance to proven residential developers in the South-East of England and has provided credit approved terms on deals amounting to £450 million in the last three months. The business is funded through Henley’s wide portfolio of global institutional limited partners, providing more than £500 million of allocated funding which is expected to double through the second half of 2013. Henley’s minimum loan size is £15m with no upper limit.

Henley is an active investor and manager in both the residential and commercial markets and has seen a flurry of deals over the summer.

Ian Rickwood, Chief Executive Officer of Henley Investments, said: “This initial deal and HPF’s strong pipeline proves once again Henley Investments’ outstanding ability to capitalize on high performing risk adjusted investment opportunities. Over the past year Henley’s team of renowned market experts has been highly active and successful in sourcing the most attractive deals across the real estate sector and our outlook for 2014 is geared on further substantial growth. We expect major activity in all of our divisions for the balance of the year.”

Richard Story, Managing Director of Henley Property Finance, added: “We are delighted to announce this initial HPF investment and expect more to follow soon. The increased interest in HPF’s offering and substantial demand for residential debt financing in the market proves the potential of this investment-class with strong return prospects for Henley’s investors.”