Blend, a specialist in development finance, has announced a significant boost to its lending capabilities with a new £50 million+ institutional funding line.

Blend’s latest financial infusion is designed to introduce bridging options for property developers who have hit a rough patch. The company, which first made waves in 2018, is expanding its portfolio of financial products to meet the growing needs of the real estate development sector. This move comes on top of an impressive £120 million in committed capital previously secured from a consortium of large family offices, aiming to enhance Blend’s lending capacity and further assist mid-size property developers in the UK.

Understanding the Developer’s Dilemma

Yann Murciano, the CEO of Blend, shed light on the dire situation many developers find themselves in. “The past 18 months have been particularly challenging for the property development sector,” Murciano explained. Sales have plummeted, projects are taking longer to complete, and many developers are facing the expiration of their development loan facilities. The result is increased pressure from lenders who are themselves struggling with lender fatigue.

Murciano emphasises Blend’s commitment to supporting developers through these tough times. “Our goal is to help carry projects to a point where developers can meet their sales targets without resorting to discount sales or undesirable offers just to make an exit,” he said.

A Lender for All Seasons

Blend prides itself on being a “through-the-cycle” lender, meaning they stick with developers through thick and thin, understanding the intricacies of the development process and the challenges it entails. “We’ve crafted a product that not only meets the needs of developers but also sets us apart as a lender,” Murciano stated with confidence. The new institutional funding line is a testament to Blend’s dedication to supporting the UK’s property development sector, providing the much-needed “dry powder” to keep developers moving forward despite the odds.