£650,000 Development Finance for Residential Scheme
An experienced property developer required funding for the acquisition and development of a residential site with planning permission for a small scheme of new homes.
The opportunity had clear potential, but the funding needed to accommodate both the initial property purchase and the subsequent construction programme.
The Requirement
The developer had identified a residential development opportunity and agreed terms to acquire the site.
In addition to funding the purchase, significant capital would be required throughout the build for construction costs, professional fees and other expenditure associated with completing the development.
A total development finance facility of approximately £650,000 was required.
The Challenge
Development finance differs considerably from a conventional property purchase.
The lender needed to consider not only the current value of the site, but the proposed development, build costs, experience of the developer and anticipated value of the completed scheme.
The facility also needed to provide sufficient flexibility for funds to be released as the development progressed.
With the acquisition moving forward, identifying an appropriate lender and establishing a workable structure was important to keeping the transaction on schedule.
The Solution
Revia reviewed the proposed development, funding requirement and experience of the borrower before considering appropriate development finance lenders from across our network.
A structure was identified that provided funding towards the initial acquisition alongside further capital to support construction as the development progressed.
This allowed the developer to secure the site while having a defined funding structure in place for the wider project.
The Result
A £650,000 development finance facility was arranged to support the acquisition and construction of the residential scheme.
The facility provided the developer with a clear route from site acquisition through to completion while reducing the amount of capital that needed to be committed to the project upfront.
With funding secured, the developer could proceed with the development programme and focus on delivering the completed scheme.
Property Development Finance Through Revia
Property development transactions can involve multiple stages, from acquiring the site through to construction and eventual sale or refinance.
Revia helps bridge the gap between property developers and specialist lenders by understanding the project, structuring the funding requirement and approaching appropriate providers from across our network.
Whether funding is required for an acquisition, construction costs or a complete development facility, we can help explore the options available.
