BLEND Network launches 75% LTGDV product
BLEND Network, the specialist development finance lender, has announced the launch of a new high-gearing product which offers up to 75% loan-to-GDV (LTGDV) and up to 90% loan-to-cost (LTC).
It 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.
The BLEND Network Blended facility is available to experienced property developers looking to do residential schemes of up to £10m GDV across the UK.
Yann Murciano, chief executive at BLEND Network, said: “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 other lenders can offer them.
“Our game is to support developers by lending more to them 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, added: “We’ve spoken and listened to property developers. What many experienced and established developers are saying is that there is 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, said: “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 adopt a less cautious 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.”