LandlordInvest has completed its first senior development loan, expanding from its typical activities of providing mezzanine debt for ground up developments.
The peer-to-peer property lender, which exited the buy-to-let space last year, said that the “relatively small loan” marks its first venture into senior development lending.
The facility was lent to a repeat customer to build a three-bedroom detached residential house over four floors in Monmouthshire, Wales.
“The loan was fully funded in 13 seconds, showing private lenders’ appetite to finance good development projects and professional property investors throughout the country and achieving much higher returns than keeping money in a bank in the current inflationary environment,” said LandlordInvest chief executive Filip Karadaghi in a post on LinkedIn.
The valuation was carried out by Dawsons, with project monitoring by Bruton Knowles and legal advice from Jack Medlicott of MSB.
“Excited and looking forward to supporting more projects and working with more clients looking for senior development financing for their projects,” Karadaghi added.
As Peer2Peer Finance News reported earlier this year, LandlordInvest has branched out into senior development finance as part of its strategy to move into the specialist bespoke finance space.
“We’re doing no more buy-to-let, at this time we do not feel it’s a focus, we’re focusing on bridging and development, it’s a natural evolution of products,” Karadaghi said in February.
“Buy-to-let is a low revenue product compared to bridging and development and you need to do it at a larger scale for it to work. We’re not prioritising going in that aspect so buy-to-let becomes a less interesting product for us, it’s less economically viable given where the company is heading.”