Kuflink Bridging

Kuflink Bridging completes its first drawdown loan

Kuflink Bridging has announced the completion of its first drawdown loan for £1.2m on a partially completed nursing home in Essex.

The first tranche of £200,000 was drawn earlier this month with the conversion project expected to take seven months to complete.

Following market analysis, Kuflink recognised that the common denominator in successful development transactions was the experience of the developers and the track record they have established.

According to Narinder Khattoare, group operations director of Kuflink Bridging (pictured above), the short-term lender has been searching for opportunities to expand its offering to intermediaries, as well as providing more attractive opportunities for investors via its sister company Kuflink and its peer-to-peer platform.

“We have been asked for some time whether we would consider development loans,” said Narinder.

“Up to now, we have concentrated on straight, short-term commercial loans, but after reviewing the market for this service, it was clear that if we worked with developers possessing the right know-how and experience, we would be able to minimise risk and maximise the ability to respond quickly and decisively when enquiries reach us.

“For this loan, we took a first charge over the property, which meant our investment was well covered at the outset.”

On completion of the renovations, Kuflink’s exposure will be less than 30% LTV.

“We were able to provide the funding quickly because of the experience and track record of the developers, and have offered this deal on our P2P platform,” added Narinder.

“Kuflink Bridging has already funded the deal and investors in Kuflink’s platform not only have the security of a first charge against the property, but also that Kuflink Bridging holds the first 20% of the investment itself.

“All in all, this is a great result for the developers and for our investors.”

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