Blackfinch Property completes £8.6m housing development loan
Financing will be used for a new housing development in Martham, Norfolk
Blackfinch Property has completed an £8.6m development loan to convert disused farmland on the outskirts of Martham, Norfolk into a housing development.
The loan has a 24-month term, and will be used for the land purchase and construction of 63 private houses in the first two phases of the project, as well as for the land purchase required for the third phase in an overall development of 112 houses.
The development also facilitates 24 affordable housing units for the local community on this site to be funded by a housing association.
This is the latest of several loans Blackfinch Property has completed with Elemento Group. Given the size of the project, a development loan for all 112 units would have been outside typical lending criteria and would have exposed the borrower to excessive risk. However, the strong relationship between Blackfinch Property and Elemento Group, meant it was possible to create a bespoke lending structure to ease cashflow and effectively manage risk.
John Hartigan, Senior Investment Manager at Blackfinch Property, said: “We were particularly pleased to complete this latest of our loans with Elemento Group. As well as working closely with them to create a bespoke lending structure, the purchase involved quite a few parties which required diligence and dedication from the borrower, their advisers and the Blackfinch legal team to get the loan agreement in place.
“The resulting three-phase project ensures funding is focused on phases one and two, with agreed milestones in place so that the borrower can sensibly manage their build programme.”
Blackfinch Property is a fully funded provider of innovative short-term bridging and development financing solutions. For more information, email [email protected]