Blackfinch Property Provides Development Loan for Residential Properties in the West Midlands
Following a loan provided by Blackfinch Property, a brownfield site situated in the West Midlands will undergo extensive development to become a series of new residential properties in Cradley Heath.
The loan is to be used for the purchase of the site, clearance of the land and erection of the dwellings. The site is not currently in use and will be cleared in preparation for the development.
The development will comprise two, three and four-bedroom, semi-detached and detached houses. It will make up the first two phases (36 units) of a larger 53-unit modern residential development.
The properties will be in an ideal location, with easy access to local schools and supermarkets. They will lie within a short walk to nearby parks and playgrounds with local buses to the high street. The site is also within walking distance to Cradley Heath train station,
which provides easy transport links to Birmingham New Street and Birmingham International stations.
The borrower had taken out an option to purchase the land, and it was critical for them that the loan was completed without this option expiring. The land purchased was subject to VAT. Following due diligence, an additional facility was provided to fund this VAT and ensure that the loan could be made in time.
The VAT funding requirement was not known until near the completion date and Blackfinch went the extra mile to deliver the extra funding and enable a successful deal. This was the first such VAT facility that Blackfinch Property has provided, which may be applicable to other borrowers in future.
We were delighted to support the experienced developer on this project, with it being the latest of several successful developments from them that we have funded in recent years. This loan continues our investment in the Midlands region through supporting local developers and helping them to regenerate brownfield sites with much needed housing.
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