FIBA Professional Partner CG&Co's Property Cases Break £300m Barrier in 2019
31 Jan 2020
CG&Co has witnessed a dramatic growth in the volume and value of property-related cases during 2019.
The firm, which specialises in property receivership, experienced a 40% rise in the number of appointments and a 200% increase in the value of the properties under its control to £300m.
Over the past 12 months, bridging loans have also accounted for a higher percentage of these cases.
CG&Co attributes the increased number and value of these appointments to the tough economic trading conditions faced by borrowers combined with the rapid growth of the bridging sector and its enhanced presence in this sector.
CG&Co partner Daniel Richardson explains: "The poor performing property market has resulted in an increasing number of defaults in the bridging sector as borrowers find themselves unable to achieve their exit plans, either by sale or refinance.
"In addition, the bridging sector is growing with a constantly increasing number of borrowers turning to this style of funding over the past 12 months.
"As a result, the volume of defaults across the market has shown a corresponding increase."
Richardson asserts that bridging lenders choosing to work with CG&Co experience a partner-led highly proactive service from the moment of appointment.
He continued: "Regardless of where a property is located in the United Kingdom, we take a hands-on approach from the initial actions through to completion - our clients like the fact they always deal with a partner.
"From the outset, we're entirely focused on taking control and formulating the right strategy to get a loan repaid in the shortest possible timescale."
Among CG&Co’s closed cases, Richardson highlights the sale of a period property converted to six modern self-contained apartments as an example of the firm’s ability to recover loans on behalf of clients in the shortest time frame.
Following CG&Co’s appointment, it secured the rental income, improved the occupancy level and subsequently completed the sale at the asking price which achieved a full recovery for the lender within six months.
Richardson concludes: “I firmly expect the bridging market will be busier than ever over the next 12 months as borrowers continue to seek quick competitive property finance.
“It is also to be hoped that the property market continues to pick up throughout 2020, which should enable borrowers to implement refinancing as confidence grows and valuations improve, or indeed assist in disposal strategies in recovery situations.”