Folk2Folk, the South West’s leading People-to-Business finance company, has introduced funding that will help deliver the £400 million Langarth Farm mixed use development on the edge of Truro. Developer Inox Group has completed the purchase of 160 acres of land for Langarth Farm thanks in part to investment secured through Folk2Folk’s peer-to-peer lending network.
Launceston-based Folk2Folk matches people with funds to invest and who are looking for a competitive rate secured against property, with local people and businesses seeking finance for projects on an interest only basis.
Rob Saltmarsh, managing director of Inox Group, said: “We’ve been impressed by Folk2Folk’s ability to match local investors with local investment opportunities and we were keen to explore whether that could work for Langarth Farm as part of our investor mix.
“We’ve been very pleased with the result. We have not only secured competitive funding to help take our scheme forward but we also have locally-based investors whose money is ultimately helping to deliver homes and jobs in Cornwall. Acquiring the land for Langarth Farm is a huge step forward and we will be submitting a reserved matters planning application for around 600 homes this coming summer. All being well we expect to be on site with our preferred house builder partners in early 2016.”
Inox group already has outline planning permission for Langarth Farm.
The development is expected to create 1,000 jobs and includes 1,500 new homes (including 525 affordable homes), primary school, commercial space, community centre, hotel and a 600-space extension to the Threemilestone park and ride. It will also deliver around two-thirds of the proposed Northern Access Road which aims to create a new access to Treliske Hospital and ease pressure on the A390 into Truro from the west. Folk2Folk was established in early 2013 having been born out of Parnalls, an established firm of local solicitors based in Launceston. It has since introduced more than £50 million of funding to borrowers in the South West and has high street agencies dotted across the region. David Brown, Managing Director of Folk2Folk, said: “We are excited by the Langarth Farm development and proud to be involved in this early stage.
This funding is the first step towards some really great improvements for Truro including much needed affordable homes, jobs and the new Northern Access Road which should bring much needed relief to the A390. This is a prime example of how local people investing directly in their local area can bring about some real local benefits.”