Development set to deliver affordable housing and communal gardens for local community
Blackfinch Property has provided a £7.6m loan to Elemento Group to fund the development of a residential scheme on currently disused land in the parish of Great Bromley, Essex.
The 20-month loan will be used to complete the purchase of a plot of land that currently houses a number of derelict buildings, as well as fund the construction of the first 12 residential units which have already received full planning permission.
Now that the funds are in place, developer Elemento can also progress with plans to submit full planning for the remainder of the site which, on completion, will include 23 affordable housing units, as well as large communal gardens and open spaces to benefit the local community.
As part of the deal, Blackfinch Property created a bespoke funding structure which has allowed for works to start onsite immediately and manage the borrower’s overall risk in the project. The development is expected to have a GDV (Gross Development Value) of more than £32m once full planning is in place for phase 2.
Commenting on the deal John Hartigan, Senior Investment Manager at Blackfinch Property, said it was reflective of the company’s ‘ongoing commitment’ to investment in projects that would enhance local communities, and which have environmental, social and governance (ESG) values ‘at their core’.
This is the latest of several loans Blackfinch Property has completed with Elemento Group, including an £8.6m development loan to convert disused farmland on the outskirts of Martham, Norfolk into a housing development earlier this year.
Commenting on the deal, John Hartigan said: “Blackfinch Property is delighted to once again be supporting this growing developer to deliver on its latest project ambitions.
“This is an exciting residential development that will bring back into use derelict buildings and land that will serve to benefit the local community of Great Bromley – providing much needed affordable housing and communal gardens.
“With funding now in place Elemento Group is in a position to progress the construction of the first 12 units, while also pressing ahead to secure full planning permission for the remainder of the site.”