Development Finance
Expert funding solutions for residential and commercial property developments.
Property development is capital-intensive, time-sensitive, and carries unique risks that require specialist lending expertise. Whether you are building a single residential unit or delivering a large-scale mixed-use scheme, the finance structure must be tailored to the project's specific characteristics — the build programme, cost profile, sales strategy, and risk factors.
Aberdeen Corporate Finance works with a carefully selected panel of development finance lenders — including high-street banks, specialist development lenders, and private credit funds — to structure facilities that align with your project requirements and maximise your return on capital employed.
Development Finance Solutions
Ground-Up Development
Funding for new-build residential, commercial, and mixed-use developments. Finance is drawn down in stages as the build progresses, with interest typically rolled up into the facility and repaid on completion or sale of the finished units.
Conversion & Refurbishment
Finance for converting existing buildings — offices to residential, barns to dwellings, commercial to mixed-use. Refurbishment finance covers light-to-heavy renovation works, with terms structured around the project timeline and planned exit.
Staged Drawdowns
Development finance is released in tranches aligned to your build programme and certified by an independent monitoring surveyor. This ensures you have the capital you need at each construction milestone without paying interest on undrawn funds.
High GDV Leverage
Facilities are typically structured against the Gross Development Value (GDV) of the completed scheme, with senior debt of up to 65–70% of GDV and total funding — including mezzanine — reaching 80–90% of costs.
Planning & Pre-Development
Finance for site acquisition, planning applications, and pre-development costs. Some lenders will fund the purchase of land with planning permission in place, while others will consider sites with planning pending, subject to conditions.
Exit Finance
On completion of the development, exit finance — typically a bridging loan or investment mortgage — can be arranged to repay the development facility while units are sold or let. We coordinate the exit strategy from the outset.
Typical Parameters
Max of Total Costs
Max of GDV
Typical Terms
Facility Sizes
Suitable For
The Development Finance Process
Project Appraisal
We review your development appraisal, build costs, GDV projections, planning status, and experience. This allows us to assess the fundability of the project and identify the most appropriate lenders.
Lender Selection & Terms
We approach development lenders from our panel, securing indicative terms that compare facility size, interest rates, arrangement fees, and monitoring requirements.
Due Diligence & Monitoring
The lender instructs an independent monitoring surveyor to review the project. We coordinate the due diligence process alongside your professional team.
Staged Drawdowns & Build
As construction progresses, drawdowns are released upon satisfactory monitoring surveyor reports. We liaise with the lender throughout the build phase.
Completion & Exit
On practical completion, we coordinate the exit strategy — whether sale of units, refinance to investment mortgage, or transition to a holding facility.
Important Notice: Aberdeen Corporate Finance Limited acts as a commercial finance broker and introducer. Development finance is secured against property and carries inherent construction and market risk. All facilities are subject to status, valuation, monitoring, and lender criteria. Aberdeen Corporate Finance Limited is not regulated by the FCA.
Planning a Development?
Contact us to discuss your project and receive competitive development finance proposals from our specialist panel.
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