Blend Network launches new 75% LTGDV development finance product

By Bridging Loan Directory 30th September 2021

BLEND Network, the specialist development finance lender, has today announced the launch of a new high-gearing product : The BLEND Network Blended facility.

The new blended facility offers up to 75% Loan-To-GDV (LTGDV) and up to 90% Loan-To-Cost (LTC).

The product effectively blends mezzanine and senior debt into one single facility, making it easier and faster for developers to borrow in one place without having to structure the deal with several lenders.

This means that borrowers are able to optimise their Day 1 cashflow and therefore maximise returns.

The BLEND Network Blended facility is available to experienced property developers looking to do residential schemes of up to £10m GDV across the UK.

The new product as an addition to BLEND Network’s suit of existing development finance products.

Earlier this month, BLEND Network launched Development Plus, powered by LDS Sales Guarantees, the first-ever development finance product with a guaranteed exit for housebuilders and lenders.

Yann Murciano, Chief Executive at BLEND Network, commented:

“With our new blended facility, we are offering our experienced developers pre-Covid levels of LTGDV.

At a time when most lenders have capped their gearing at 65% post-pandemic, we are sending a strong signal to the market that we are ready to back established property developers who want more cash than what other lenders can offer them.

Our game is to support developers by lending to them more than other lenders can afford to lend. So, effectively we are offering an alternative to challenger banks who are more constrained by their credit terms.”

Roxana Mohammadian-Molina, Chief Strategy Officer at BLEND Network, commented:

“We’ve spoken and listened to property developers. What many experienced and established developers are saying is that there are no shortage of opportunities in the current market, yet many deals are being lost due to the constrained nature of many lenders who have a limited understanding of the true requirements of the development process.

That’s why we are saying to experienced developers loud and clear: if you have a good scheme and need to up your gearing to make it work, we’ll back you. We will offer you more cash than other lenders, we will max your gearing.”

Paul Watson, Head of Lending at BLEND Network, commented:

“It’s time to go back to pre-Covid levels of gearing, to get Britain moving, to get lending going.

The past 18 months have been unprecedented at all levels and you’d have expected that by now, with life returning to some kind of normality, lenders would start to adop a less cautios approach but the reality is that many lenders continue to tread carefully.

That’s why we are launching this new 75% LTGDV facility right now; because it’s what the market needs right now and what developers are begging for.”