Blackfinch Property has completed a £4.0m, 36-month facility to support a newly completed mixed-use scheme in Stevenage, Hertfordshire, bringing around 20 brand new apartments to market above ground-floor retail units.
The funding is structured as a bridge-to-let facility, moving into a commercial term loan once the residential lettings are in place and the scheme is fully established. It’s a structure designed to match what happens after practical completion, giving the borrower time to build occupancy and stabilise income.
A key strength of the deal is the position at street level. The retail units are already pre-let, providing early income and a clear sign of demand for the location. That matters, because it helps support the wider scheme and gives added confidence in the appeal of the apartments being developed above.
As with many newly finished schemes, timing and documentation were important. When building control sign-off delays arose, Blackfinch Property worked closely with the borrower to keep momentum and reach a point where lending could progress with confidence. This was supported through additional security, deeper property-level due diligence and input from specialists across the wider Blackfinch team.
The facility is secured against a gross development value (GDV) of around £6.1m and is provided in the borrower’s personal names, covering both the residential and commercial elements within one structure.
Energy performance is another positive. The apartments achieve an Energy Performance Certificate (EPC) rating of B, while all but one of the commercial units already meet the anticipated 2030 minimum standard of EPC C. In recognition of the strong energy performance across the scheme, Blackfinch Property was able to apply a pricing discount.
Philip Dart, Senior Investment Manager at Blackfinch Property, said: “The borrower was excellent to work with throughout, and we were pleased to deliver a structure that supported the scheme even as the loan requirements evolved after completion. With the retail space already pre-let, there’s a strong base to build on, and we look forward to working together again soon.”