Folk2Folk, a leading UK people-to-business finance company, has just introduced funding to help deliver the £400 million Langarth Farm mixed-use development on the edge of Truro in Cornwall, England, according to the Western Morning News.
— WMN Business (@WMNBusiness) April 22, 2015
The group’s managing director, Rob Saltmarsh, said,
“We’ve been impressed by Folk2Folk’s ability to match local investors with local investment opportunities and we were keen to explore whether that could work for Langarth Farm as part of our investor mix,” adding “We have not only secured competitive funding to help take our scheme forward but we also have locally-based investors whose money is ultimately helping to deliver homes and jobs in Cornwall … we will be submitting a reserved matters planning application for around 600 homes this coming summer.
Folk2Folk is based in Launceston, and works by introducing borrowers with properties in the South West who are looking for interest-only secured loans to lenders looking for competitive returns on their investment and the security of a first mortgage, according to the company’s website. The company has raised over £30 million in loans, and has lent to borrowers in the renewable energy, house building, leisure facilities and land and property acquisition sectors. Notably, Folk2Folk aims to complete funding within seven to 10 days of an application being made by a borrower. Loan terms range from three months to five years.
Established in 2013, the company was born out of Parnalls, an established firm of local solicitors based in Launceston. Since its founding, Folk2Folk has introduced more than £50 million in loans to businesses in two years (without defaults), with high street agencies across the region. The development’s expected benefits include creating:
- 1,000 new jobs
- 1,500 new homes (including 525 affordable homes)
- A primary school, commercial space, community centre, hotel and a 600-space extension to the Threemilestone park and ride
Folk2 Folk’s managing director, David Brown, said,
This funding is the first step towards some really great improvements for Truro … [It] is a prime example of how local people investing directly in their local area can bring about some real local benefits.