The 20-month loan will be used to complete the purchase of the plot of land that currently houses a number of derelict buildings, as well as fund the construction of the first 12 residential units — for which the client has already secured full planning permission.

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.

Following this, Elemento will apply for full planning approval for the remaining site, which is set to deliver a total of 23 affordable homes, as well as large communal gardens and open spaces for the local community.

The development is expected to have a GDV of more than £32m once full planning is in place for phase two.

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This is the latest of several loans that Blackfinch Property completed for Elemento Group — earlier this year, the lender provided an £8.6m development loan to convert disused farmland in Norfolk into a housing development.

Commenting on the deal, John Hartigan, senior investment manager at Blackfinch Property, said it was reflective of the company’s ongoing commitment to invest in projects that would enhance local communities and which have ESG values at their core.

“We are 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 to benefit the local community of Great Bromley — providing much-needed affordable housing and communal gardens.”