Blend funds new build block of 9 apartments in Cornwall

By Bridging Loan Directory 29th October 2024

BLEND, the specialist development finance lender, has today announced that it has provided a £3.4m senior debt facility to assist a local developer building a new build block of 9 apartments in a magnificent location on the Cornwall coastline.

Aquilae Capital introduced the opportunity and worked closely with the developer and the team at BLEND to close the facility and navigate several challenges along the way.

The 24-month, 75% LTGDV debt stack will be used to acquire the site and develop 9 flats for sale on the open market.

The site is located in an enviable position with panoramic sea views directly opposite Lusty Glaze beach, a privately-owned sandy beach sheltered by the imposing high cliffs on the edge of Newquay.

Over the past few months, BLEND has funded a variety of residential development schemes sitting at both ends of the scale.

From high-end schemes such as the conversion of a Grade II Listed property in Saffron Walden, to more affordable schemes including the redevelopment of a former care home into 21 residential units in Bexhill on Sea.

In conjunction with supporting developers getting homes built, Blend is also working with borrowers at both ends of the development cycle, securing buildings with planning plays on the way in and developer exits on the way out, all under one roof.

David Alcock MRICS, MD at BLEND, commented:

“We are delighted to have completed this deal.

Unsurprisingly, like 99.9% of development loans, the journey from the first site meeting to closing delivered a few challenges along the way, but that’s ok and was evidenced as to why there’s no need to panic when you have an experienced team around you.

It was also a pleasure to work with Matthew Yassin of Aquilae Capital who introduced the opportunity, again highlighting the importance of experienced advisors working as a team with the lender all pushing in the same direction.

We know the challenges that developers face in securing funding, especially at a time when many banks and other lenders have crept back their lending appetite.

At BLEND, we’ve built a reputation for being a through-the-cycle lender, a lender who understands the development process and the challenges that come with it and why relationship lending matters so much.

From the point of our first site meeting, it was clear that the developer, with a longstanding track record in the area, knew their target market and well placed to deliver what should be a truly stunning development”.

Matthew Yassin, Managing Director at Aquilae Capital, commented:

“It was a pleasure to work together and deliver the funding to support a highly experienced and motivated local developer with BLEND.

The process again demonstrated the importance of having experienced people around who enable progress when issues are identified.

David Alcock and the team at BLEND really proved their flexibility and skill as a lender to support the scheme.

Development finance is a core focus for the team here at Aquilae Capital and we are seeing a lot more schemes in the market starting to edge forward.

This deal will hopefully continue to provide the market with the momentum required.”