£325,000 Development Exit Facility for Completed Scheme
A property developer approaching the end of an existing development finance facility required a new funding structure after completing a residential scheme.
Construction was finished and the properties were being marketed for sale, but the developer wanted additional time to achieve appropriate sales without remaining on the original development facility.
The Requirement
The residential development had reached practical completion, significantly changing the nature of the lender’s risk compared with the construction phase.
However, several units remained unsold and the existing development finance facility was approaching the end of its term.
Approximately £325,000 was required to refinance the outstanding development debt and provide the developer with additional time to complete the sales process.
The Challenge
The developer did not want pressure from the existing facility’s maturity date to dictate the timing of property sales.
Selling completed units quickly simply to repay development finance could potentially restrict the developer’s ability to achieve its intended sales strategy.
The requirement therefore called for a facility designed around a completed development rather than further construction.
The Solution
Revia reviewed the completed scheme, outstanding borrowing and proposed exit strategy before approaching appropriate property lenders from our network.
A development exit facility was identified to refinance the existing development debt.
Moving onto an exit product provided a funding structure better aligned with the project’s current stage, allowing the developer additional time to market and sell the remaining properties.
The Result
A £325,000 development exit facility was arranged, repaying the existing development finance and providing a clearer timeframe for the remaining unit sales.
The developer could move away from the original construction facility without immediately selling the remaining properties purely to meet its maturity date.
As units were subsequently sold, proceeds could be used to reduce the outstanding facility in accordance with the agreed structure.
Development Exit Finance Through Revia
Reaching practical completion doesn’t always mean a property development is financially complete.
Where units remain unsold or a longer sales period is required, development exit finance can provide a bridge between completing construction and achieving the final exit.
Revia works with property developers to understand the completed scheme, existing borrowing and intended exit before identifying appropriate funding options from across our lender network.
