Blackfinch Property, a quickly expanding agile lender to the UK property market, has closed its largest loan to date, a £20m refinancing for a mixed portfolio of 54 residential and business buildings in East London.
The landlord will be able to continue offering London tenants high-quality homes and businesses thanks to the 24-month lease from Blackfinch Property, and funds will also be freed up for other renovation projects.
Blackfinch Property evaluates each investment opportunity based on its potential to serve society in terms of the environment, society, and governance (ESG).
The loan is designed to encourage the borrower to improve the ratings on the Energy Performance Certificate (EPC) for the 30% of the properties that were less energy-efficient if the energy-saving work is completed on schedule.
During a period of mortgage rate instability, the fixed rates given by the commercial term loan provide some certainty for the borrower.
Phil Downie, Blackfinch Property investment manager, said: “We’re very pleased to support this experienced landlord in providing the highest quality homes and workplaces for Londoners. This is Blackfinch’s largest loan to date and is backed by top London real estate with the interest fully serviced by the underlying income. The properties already represent some of the best homes in their markets and will be further improved over the loan term by upgrades to their energy efficiencies.”
To finalise the transaction, the Blackfinch in-house legal team created a tailored approach to due diligence, which sped up the process and saved the borrower money.
A representative sample of properties received title reports, and the remainder properties received title insurance from an insurer.
This customised strategy shows Blackfinch Property’s adaptive, entrepreneurial, and practical approach to satisfying its borrowers’ needs.
With the introduction of new products and the signing of new contracts, Blackfinch Property has been expanding quickly.
The South East residential building project that received their previous-highest loan of £14.8m was completed at the end of 2022, and the loan book increased by 61% in the previous year.
Since the launch of the new product in January 2023, Blackfinch Property has made seven commercial term loans; the first of these helped secure the future of a well-liked restaurant outside of Birmingham’s downtown.