Blackfinch Property, a rapidly growing agile lender to the UK property market, has completed its largest loan to date, a £20m refinancing for a mixed portfolio of 54 residential and commercial properties across East London.
The 24-month deal from Blackfinch Property will enable the landlord to continue to provide high quality residential and commercial properties to London tenants, with funds also released for further improvement works. All investment opportunities at Blackfinch Property are scored against criteria that will deliver Environmental, Social and Governance (ESG) benefits. This loan is structured to incentivise the borrower to improve the Energy Performance Certificate (EPC) ratings for the 30% of the properties that were less energy-efficient should the energy saving work be completed in time.
During a period of mortgage rate uncertainty, the fixed rates offered under the commercial term loan also provide some certainty for the borrower.
About the deal, Blackfinch Property investment manager Phil Downie said: “We're very pleased to support this experienced landlord in providing the highest quality homes and workplaces for Londoners. This is Blackfinch’s largest loan to date and is backed by top London real estate with the interest fully serviced by the underlying income. The properties already provide some of the best homes in their markets and will be further improved over the loan term by upgrades to their energy efficiencies.”
To complete the deal, the Blackfinch in-house legal team created a bespoke approach to its due diligence process that sped up the transaction and saved the borrower fees. Report on Titles were completed for a representative sample of properties, with an insurer providing title insurance for the remaining properties. This is unusual and demonstrates the flexible, entrepreneurial and practical approach taken by Blackfinch Property in meeting the needs of its borrowers.
Blackfinch Property has been enjoying a period of high growth which has seen the launch of new products and the signing of new deals. Their previous largest loan was a £14.8m residential development loan in the South East completed at the end of 2022 and the loan book has increased by 61% over the last year. This is the seventh commercial term loan issued by Blackfinch Property since the new product launched in January 2023, with the first helping to secure the future of a popular restaurant just outside of Birmingham city centre.