BLEND Network, a leading property investment platform specialising in funding low-cost, accessible housing developments outside of London announces its largest deal so far with a £2,335,000 loan to finance the acquisition and redevelopment of a key Stafford office building into residential departments. This milestone highlights BLEND Network’s commitment to the Midlands, with loans extended by the company to fund low-cost and accessible housing projects in the region now totaling over £3million over the past four months.
The initial tranche of the total loan facility extended by BLEND Network is a £900,000 loan to refinance the property and fund the initial redevelopment works. Image House will be converted from an office building into 23 residential apartments, representing a much-needed housing boost in Stafford.
Over the past four months BLEND Network has completed funding for four other loans to redevelop existing properties into low-cost housing across the Midlands. Gosford Park, Hipswell and Humber Avenue developments are all located in Coventry, with all three of the developments converting existing properties into Houses of Multiple Occupancy (HMO).
Both the Gosford Park and Hipswell projects are led by the same developer, which specialises in HMO conversions in the West Midlands. The fourth development is located in Heanor. The Market Street project in Heanor will involve the conversion of a property into four flats and an upgrade of the ground floor retail units. All these deals highlight BLEND Network’s commitment towards providing affordable and quality housing to professionals.
Investor enthusiasm for financing such developments in the region is strong, with BLEND Network’s loans for the four smaller developments loans being funded in less than five minutes.
The housing crisis is particularly acute in the West Midlands, where four of the developments are located, with a recent National Housing Federation report stating that a further 21,100 homes need to be built in the region. With the requirement for low-cost, accessible housing being so high in the West Midlands BLEND Network is are seeking to develop further ties with local developers to help accelerate housebuilding in the region to help alleviate the crisis.
BLEND Network is a property investment platform which allows lenders to invest in property-secured loans. Private lenders are able to co-invest from £1,000 with very sophisticated high net worth lenders in the same deal, in a move that is leading to the increasing ‘democratisation’ of investing. Investors so far, have been benefitting from an 8% return per annum.
Roxana Mohammadian – Molina, Chief Strategy Officer, at Blend Network said: “We are very pleased to have funded five projects across the Midlands, helping to develop much needed accessible housing in the region. We encourage other property developers to contact us as we are keen to fund further projects as our platform lenders have shown a significant appetite to fund such developments. Housebuilding throughout the UK is failing to keep pace with population growth in the country’s fastest growing towns, with the lack of accessible housing causing the greatest concern and we are keen to play a strong role in addressing this nationwide issue.”