Hodge is expanding its residential development offering, incorporating lending across the alternative residential asset class, including student housing and retirement residences.
The provider says the change comes in response to demand from its clients and brokers seeking funding in this asset class. After focusing more on pure residential development over the past two years, Hodge is now looking to expand its reach and fund experienced developers across multiple asset classes.
There is an active residential market with many experienced developers seeking financing for programs that have previously been slightly outside of Hodge’s appetite. Well, this criteria update will change that.
Gareth Davies, Head of Development Finance at Hodge, said: “There is clearly a demand for development finance in the alternative residential asset class and, given Hodge’s history and experience in this sector, it makes sense that we are broadening our appetite across multiple asset classes.
This adjustment is a direct result of listening to feedback from clients and introducers, active in this space, and taking action. It is the first of many new products that Hodge aims to introduce over the next few months as part of a targeted growth strategy in residential and commercial real estate.
The Hodge Development Finance Loan was created for experienced developers in England, Scotland and Wales with non-complex ownership structures.
The loan is available to Ltd companies, PLCs, LLPs, partnerships and individual borrowers offering leverage of up to 80% LTC and 65% LTGDV up to a maximum loan of £5 million on a duration of 24 months.