The specialist lender has agreed to fund Halsbury Homes’ construction of 216 units in Richmond Park, the first section of the site to be developed on which Halsbury has consent to build 1,310 homes.
The funding represents LendInvest’s largest development project to date with regards to the number of units under construction.
Halsbury Homes initially received a £10m bridging loan from LendInvest to repay an existing lender, with the borrower then transitioning to a development finance loan of £7.75m for construction.
The developer has consent for further amenities – such as a school, shops and a retirement home – within Richmond Park.
The total loan provision for the site is just under £18m based on an LTV of 64% and the 216 units are expected to have a GDV in excess of £59m with a completion date of late 2019.
“Funding a development on the scale of Richmond Park is hugely exciting as a lender,” said Steve Larkin, director of development finance at LendInvest (pictured above).
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“There is great potential for a very long-term relationship and this deal shows how far we have grown as a development finance backer in two years since our development loans were formally launched.
"The fact that this will be adding at least 216 affordable homes to the country’s housing stock in an area that’s popular with families and commuters is a significant bonus.”
All 216 units funded by the development finance loan will be available for purchase via the government’s Help to Buy scheme.
Jason Green, CFO at Halsbury Homes, said it was in the fortunate position of having several funders interested in supporting the next phase of its growth.
“However, once LendInvest showed interest in supporting us on the scheme, it was not a difficult decision to partner with them, as they have been a strong partner to us on other sites.
“This transaction was no different to our previous experiences of working with LendInvest.
“The team moved quickly through the analysis and diligence phases and completed the loan documentation in a short timeframe.
“Post-completion, the lending relationship is running very smoothly.
“We are confident and excited about Whitfield and pleased to be enabling people to move, getting new, first-time buyers into the market and doing our bit to help the country solve its major housing problem.”