Investment forms part of wider £15.1m development plan including affordable housing
Blackfinch Property has completed on a £7.9m loan to fund the purchase of a disused plot of land in Houghton Regis, Bedfordshire, and to progress the development of 34 private residential properties.
Forming part of a wider £15.1m plan for new homes in the local area, the investment will also facilitate the development of 14 affordable houses to be funded separately by a Housing Association.
The 26-month loan completed by Blackfinch Property includes a phased funding structure that meets the immediate cashflow requirements of the borrower, meaning building work can now progress on site, while also managing the overall risk of the project.
All of the 48 proposed properties have been sensitively designed in the style of estate cottages that complement their surroundings and are situated in a low-density environment, including substantial open space, and woodland, that is ideal for leisure activities. This presents an opportunity to create more environmental, social and governance (ESG) positive real estate.
John Hartigan, Investment Director at Blackfinch Property, said: “We are delighted to be further strengthening our relationship with this developer who we have a long-standing relationship with. They align well with our ambitions to act responsibly in creating new real estate and a commitment to delivering on projects that benefit the local community.
“Our in-house legal team worked hard to get the deal over the line shortly before Christmas, accommodating very tight deadlines to put in place a bespoke agreement with the Housing Association involved in the scheme, and to facilitate a smooth completion. An exceptional example of the cross-functional working that’s possible with having our own legal team on-call.
“As with all of our deals, we have created a dedicated deal team who will now work closely with the developer over the coming months to oversee the progress of the project and to distribute the funds in line with the phased funding structure that is in place.
“Given the location of the site which is within easy reach of both Dunstable and Luton, we anticipate that demand for the properties once brought to market will be high, and we are very much looking forward to helping to deliver on a development that will help both individuals and businesses in the local community to thrive.”