BLSI Fund investment strategy
Where once there were many finance options for house builders to explore, today there is a substantial lack of funding available for their development projects. With many banks having substantially cut back on property development lending, there is a good opportunity for the BLSI Fund to capitalise on this demand and seize the opportunity of good rates of return and the ability to select the best quality developer partners.
Put simply, our investment strategy is to build a carefully risk-managed portfolio of development loans that offer investors:
- High levels of return
- Returns secured by real estate assets
- Moderate liquidity as loans are written for 24 months or less.
How the fund will lend
The Fund is focused on making investments in secured property loans. The Fund offers three core lending products:
Senior Residential Development Loans:
- Advances up to a maximum of 70% of the value of the completed development
- Maximum Loan advance £10,000,000
- For a maximum duration of 24 months.
Mezzanine Development Loans:
- Where the combined senior and mezzanine debt shall not exceed 70% of the value of the completed development.
- Maximum Loan advance £5,000,000
- For a maximum duration of 24 months
Bridging Loans:
- Advances up to a maximum of 70% of the value of the completed development
- Maximum Loan Advance £1,000,000
- For a maximum duration of 12 months
Where the fund will lend
Initially the Fund’s lending activity will be focused on London & Southern England, where the directors believe the property market is more stable. Our continued review of geographical property market conditions gives us the ability to react quickly to change and the flexibility to exploit opportunities.
Loan security
BLG development loans will be secured by first legal charge or, in the case of mezzanine loans, a second legal mortgage over the security property. If applicable to the underlying transaction other security may be taken in the form of assignment of construction contracts, collateral warranties, corporate & personal guarantees.
For typical BLG case studies > more
Important notice - This webpage is designed solely for investment professionals as defined in the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001. The content of this webpage should not be relied upon by, disclosed to, or circulated to, private investors. This webpage does not represent an offer for subscription.
The investments described are unregulated collective investment schemes as defined by the FSMA. The Schemes have not been authorised or otherwise approved by the FSA and, as unregulated collective investment schemes, cannot be marketed in the UK to the general public.
The Information Memorandums give information relating to the fund, and should be read and understood prior to any investment being made.