The client, property developer Belgrave Road Limited, required the facility for the acquisition and refurbishment of 10 properties in Gloucester with a combined GDV of £4.6m, comprising several HMOs and apartments.
The first tranche of £1.7m will be used to purchase the properties and provide funding towards the build, while the further tranches will be used to finish the building works.
The entire lending facility was agreed at 57% LTGDV on a 21-month loan term.
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Yann Murciano, CEO at Blend Network, said: “Mid-market property developers, even the very experienced ones such as the team behind this project, regularly struggle to unlock finance, and the past 12 months have been particularly challenging for many developers after traditional lenders have pretty much pulled out to focus on administering CBILS.
“So, there is a huge funding gap in mid-market development finance for facilities below £10m, such as this one, and this creates a significant opportunity for lenders like us.”
He added that Blend’s success in funding the deal within six minutes illustrated the strong case for bringing alternative lenders into the fold to help the UK housing market.
Roxana Mohammadian- Molina, chief strategy officer at Blend Network, added: “The case for alternative lenders is now stronger than ever before since these flexible organisations have illustrated their mightiness, despite their nimble structure.
“Our solid track record and commitment to support our borrowers has helped us fund another project in a seamless and speedy manner and we were able to fund this £1.7m loan in less time it takes to download a bank lending application!”