Sobolewski joins Mathon as first chief

Published on Saturday 19 April 2008 13:56

COMMERCIAL property lender Mathon has hired Andrew Sobolewski, one of Scotland's leading property lawyers, as its first chief executive.

He will oversee the growth of the company, created by Gregory King, a member of the Glasgow bookmaking-to-nightclubs family.

Sobolewski, commercial property partner at law firm Burness, has worked in the sector for 26 years. He takes up his new position in August. Mathon offers short-term bridging finance to companies and individuals while conventional lenders fret about releasing funds.

Sobolewski played down suggestions that the company is capitalising on the credit crunch to provide funds while banks struggle over liquidity problems.

But he joins Mathon at a critical time in its development as it builds on a 400% increase in deal volume over the past year.

Its loans range from 500,000 to 25m and it provides funds for between three and 12 months.

Mathon has a number of overseas investors who last year saw a 14% return on their investment, after interest and arrangement fees.

Two new funds will provide Mathon with about 500m of investment firepower. It is funded principally through an Isle of Man-registered hedge fund and the typical customers are property professionals – surveyors, architects or lawyers – and everything is lent against property, with a maximum loan-to-value of 75%.

The big selling point is the short-term decision making process. While banks can take up to eight weeks to make a lending decision, Mathon promises an answer in a week. Sobolewski says flotation, which was rumoured to be on the agenda last year, is no longer on the cards as the company has sufficient funds.

The business was set up by Gregory King, son of bookmaker Hugh and cousin of nightclub owner Stefan.

Gregory is a trained lawyer who worked for the Glasgow firm McGrigor Donald before setting up his own business. He was one of the junior solicitors who worked on the flotation of Celtic football club and is now estimated to have a personal fortune worth 200m.