Dragonfly’s development finance team has record start to 2016
Short- and medium-term lender, Dragonfly Property Finance, part of the Octopus group, today announced that it completed 10 development finance loans — with a gross development value (GDV) of over £66m — in the first five weeks of 2016.
The development projects financed range from a scheme of six luxury apartments in Ealing to a 48-unit student scheme in Worcester and 25 apartments with ground floor retail in Battersea. In each case, Dragonfly funded the loans up to 70% of GDV and up to 85% of net costs.
The high number of completions in recent weeks emphasises how development by small to medium-sized developers is currently a major growth area given the ever-growing housing shortage. Only last year the Government set a target for 1m new homes to be built by 2020.
In all 10 loans, Dragonfly used top London-based law firm, Weightmans, to provide the necessary property and corporate legal support.
Matt Smith, Director of Risk, Dragonfly Property Finance, commented:
“The growing imbalance between supply and demand has created a market opportunity that property developers around the country are taking up in ever greater numbers. The strength and depth of our funding lines means we are able to help them achieve their goals. Not only is our appetite for this area of the market huge, but the development proposition we have invested in over the past five years now enables us to lend rapidly and at scale. Having a law firm with the unrivalled experience and knowledge of Weightmans alongside us has further streamlined the lending process and enables us to fund development projects quicker than ever.”
William Sharpe, Partner, Weightmans, added:
“Dragonfly are well known as a force within specialist property finance but it’s their forensic knowledge of the legal requirements that come with development projects that enables them to complete on these loans in such short timeframes. We look forward to working with them closely on many more deals in 2016 and beyond.”