Online lending platform LendInvest announced on Friday it has been named exclusive lender of a long-term development scheme that aims to build up to 5,750 new homes outside Dover in Kent. According to the online lender, the borrower, Halsbury Homes, currently owns a site in Whitfield, four miles from Dover, with plans to build the 5,750 homes.
Following a competitive process, LendInvest has agreed to fund the 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. LendInvest reported that this marks its largest development project to date, by the number of units under construction. LendInvest then noted that the develop initial received of the lending platform’s bridging loan of £10 million to repay an existing lender and subsequently transitioned to a LendInvest development finance loan of £7.75 million for construction.”
While sharing more details about the deal, Steve Larkin, Director of Development at LendInvest, stated:
“Funding a development on the scale of Richmond Park is hugely exciting as a lender. 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.”
Jason Green, Chief Financial Officer of Halsbury Homes added:
“Whitfield is the second largest regeneration development in Kent and is very important to Halsbury. We have been in the fortunate position of having several funders interested in supporting our next phase of 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.”
The deal with Halsbury Homes comes less than a month after LendInvest revealed it lent £500 million to help professional property investors, developers and landlords buy, build or renovate c.1800 homes in 2017. The online lender noted that this marks a 33% increase on 2016’s £375 million lending record.