British challenger bank Allica Bank has acquired Tuscan Capital, a provider of short-term real estate lending solutions, marking its foray into the bridging finance market.
The terms of the deal were not revealed.
Based in the UK, Tuscan Capital’s team will gradually integrate into Allica Bank’s team, gaining access to the latter’s funding base and distribution network.
Through the acquisition, Allica Bank aims to utilise Tuscan Capital’s existing expertise in bridging finance along with its broker network. Allica Bank will continue to focus on expanding its commercial finance offerings for established business customers.
Moreover, the deal is expected to enable Allica Bank to broaden its commercial finance product range to include bridging and refurbishment finance.
The expansion will focus on semi-commercial and full commercial bridging, in addition to Tuscan Capital’s established residential bridging offerings.
Tuscan Capital CEO Colin Sanders said: “This is a really positive development for the Tuscan team, our intermediary partners, and the wider SME community, and we look forward to the proposition enhancements that will undoubtedly follow today’s news.
“By becoming part of this award-winning bank, we will be able to accelerate the fantastic work our team has already done, and make an even greater difference to the market.”
Established in 2020, Allica Bank has lent more than £2bn to established businesses. It offers services in both commercial mortgages and asset finance.
The bank is authorised by the UK Prudential Regulation Authority (PRA).
Allica Bank chief commercial officer Nick Baker said: “We are thrilled to welcome Tuscan Capital into the Allica family. Tuscan’s commitment to service, and in particular their focus on speed and transparency for their broker partners and customers, meant the synergies with Allica’s values were clear.
“Commercial bridging is an important but underserved part of the lending market. That’s why we believe bringing together Tuscan’s expertise and existing relationships with Allica’s resources and network is a winning combination for the market.”
