The 18-month loan facility will be used to develop a brownfield site in Sileby, Leicestershire
Blackfinch Property has completed a £9.1m residential development loan with Elemento Group, which will be used to fund the first phase of a three-phase development in Sileby, Leicestershire. The development will provide new housing in an area that was a former refuse site, and currently includes a disused incinerator plant and ancillary buildings.
As this is a large development project totalling 108 units, a loan for all units would have been outside our lending criteria, and would have exposed Elemento Group to excessive risk. However, because we had already developed a relationship with them over several projects, we were able to work closely with them to create a lending structure that would ease cashflow and manage overall project risk.
The resulting three-phase plan ensured we could provide funding for phase one, for the development of 44 housing units, with build project milestones put in place. Blackfinch will also be funding the land purchase for phase two of the project (which does not require development funding), that includes the affordable housing provision.
John Hartigan, Senior Investment Manager at Blackfinch Property, said: “This is our third development loan with Elemento Group, an experienced developer. We were happy to invest the time to explore alternative structures to make the deal work for all parties.”
Blackfinch Property is a fully funded provider of innovative short-term bridging and development financing solutions. For more information, email [email protected].