£2.1m loan for Lancashire property development

Property investment platform Sourced Capital has provided a £2.1m loan to fund the acquisition of a Lancashire farm for the development of new homes.

Trough Laithe Farm in Barrowford, Lancashire has planning permission to develop five detached houses and refurbish the existing farmhouse.

Sourced Capital’s fund closed within 24 hours of opening.

The loan has a term of 15 months and a loan to gross development value of 66%, with an expected return for investors of 10-12 per cent per annum.

The borrower is a local property developer who intends to approach the property project in two phases.

Phase one will see the construction of the first three houses, and the second phase will see the construction of the remaining plots and the refurbishment of the existing farmhouse.

Derek Pratt, Commercial Director at Sourced Capital, said: “With a pipeline of investors with investment good to go, we were delighted to be able to fund this loan in just one day for the developers. We already have additional investors who wanted to take part but were unable to do so as the loan closed so quickly.”

Donna and Mark Whelan, the developers, said: “From the initial funding call to launching the loan opportunity on the platform, we felt that the project was in good hands. We are already looking at another funding project and we hope to have a long partnership with Sourced Capital as we grow our development portfolio.”