The deal required a deferred land payment and share purchase agreement and will help deliver 13 new build houses.

BLEND worked closely with the borrower and vendor to agree a deferred element to the purchase price, allowing part of the consideration to be paid on completion of the scheme rather than upfront.

Both private and affordable homes will be delivered on the site, with the £5m facility structured at a stretched leverage of 72% LTGDV.

David Alcock, managing director at BLEND (pictured above), explained that vendor-deferred considerations are an increasingly important tool in today’s environment.

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“Many good development schemes are struggling to get off the ground at the moment, not because the projects don’t stack up, but often because traditional acquisition structures don’t work in today’s market,” he said.

“In this case, the deferred element was fundamental in enabling a £5m facility at a stretched LTGDV, while keeping the structure robust and aligned for all parties.

“We were also very comfortable backing an experienced contractor taking their first step into development as the principle, where the fundamentals, delivery capability and risk profile were right.”