The 20-month, first-tranche loan of £1.25m, at 59% LTGDV, was financed in four business days by 110 investors, with a 10% return per annum.
The borrower, an experienced property developer, has already completed phase one of the project — which consists of 15 apartments — and now intends to start phase two of the scheme.
Living area in one of the completed phase-one apartments
Open-plan kitchen in one of the completed 15 apartments
The latest funding will be used to refinance phase one and complete the conversion of an office into 30 flats in Great Yarmouth, a seaside town in Norfolk.
The second tranche will be for a total of £1m.
“Over the past two weeks alone, over 200 lenders have invested in Blend Network’s 10% return pa loans,” confirmed Roxana Mohammadian-Molina, chief strategy officer at Blend Network (pictured above).
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“At a time when equity markets seem disconnected from the carnage taking place on the high street, with risks of a correction being widely discussed, and as interest rates on cash deposits at the bank are near zero, investors are desperately looking for places to invest their hard earned cash.”
Yann Murciano, chief executive officer at Blend Network, said the company was delighted to see repeat borrowers coming back to work with Blend.
“This is a testament to the high-quality service we provide to them at a time that no doubt is very testing for many property developers out there.
“We at Blend Network are open for business and keen to fund good deals we believe make sense.
“We are here to support more property developers build the houses the country needs.”
The latest news follows the announcement in May that Blend Network had funded its second largest loan in two business days.
The £700,000 loan was the first tranche of a £1.95m total facility, and will be used to redevelop an office building in Stafford into 27 apartments.
In May, Roxana wrote an article for Development Finance Today, arguing that P2P lenders “must be part of the solution” to avoid a protracted impact on housebuilding activity.