The first two deals are both in the south, financing Wolsey’s client, a Kent-based developer, on two developments in the Maidstone area. The total funding is just under £2m. Further deals are in the pipeline, which, if completed, will lead to approximately £8m of funding.

“To be able to make available funding up to 85% of all development costs is exceptional in this market,” said Stephen O’Brien, managing director of Wolsey:

Topland and Wolsey will focus on schemes with planning consent in the south east and commuting areas to London.

“Prices are appropriate to allow developers to take advantage of the opportunities that are clearly available within the market whilst growing their business,” said Tom Betts, director of structured finance at Topland.

The investor has teamed up with the Surrey-based residential development finance specialist to provide mezzanine funding through to senior debt to developers in the credit-constrained housing market.

The duo has completed its first two deals providing £2m of financing to Wolsey’s client, a Kent-based developer, for two developments in the Maidstone area.

A number of other deals are in the pipeline which, if completed, will lead to a further £8m being injected into the market through Wolsey.

The tie-up follows a number of others for Topland which is keen to continue to invest in the UK housing market, primarily in the South East and London commuter belt.

In May it formed a £200m partnership with residential developer Westcity and Dragonfly Property Finance, which provided £20m of mezzanine debt across its first three transactions.

Topland’s director of structured finance, Tom Betts, said: “The partnership with Wolsey reinforces our commitment to invest in the residential sector and we believe there are good business opportunities for the right developers to work with Topland and Wolsey.”

Wolsey Securities managing director Stephen O’Brien said: “Being able to make available funding up to 85% of all development costs is exceptional in this market.”

The first of two deals by the investment group has been completed with Wolsey Securities, the specialist in residential development finance. Topland is hoping to invest more than £150million in the residential sector.

The alliance means that Topland will use Wolsey’s residential expertise to make funds available, ranging from senior debt to mezzanine funding, or a combination of both. Funding of up to 85% of development costs is possible “for the right scheme”, Wolsey says. Geographically, the focus for deals is the south east of England and commuting belt to London.

A Kent based developer is the first to benefit from the arrangement; two deals for schemes in Maidstone have been financed to total just under £2 million. And Wolsey says that there are other opportunities on the horizon. If they come to fruition, this will mean around £8 million of further funding being injected into the subdued development market.

Stephen O’Brien, Wolsey’s md, comments that the funding level up for grabs is “exceptional” given the market situation: “It’s a real incentive for good housebuilders with the right schemes to increase the number of projects they have underway in their portfolio.” O’Brien adds that Wolsey is pleased to be working with Topland. As an investment group it “understands the risks involved in residential property market development, and recognises the opportunity to fund housebuilders in the current market.”