£10m Development Finance for an 86-Unit Apartment Scheme

Large-scale residential developments require more than competitive funding. They also demand lenders that understand complex projects, planning risk and efficient delivery.

In this case study, Positive Commercial Finance arranged Residential Development Finance for the construction of an 86-apartment development on the banks of the River Irwell in Greater Manchester.

The Opportunity

Our client secured a prominent development site without planning permission.

After successfully navigating the planning process, they obtained full consent to build a nine-storey apartment buildingcomprising 86 high-specification waterside apartments with private balconies, roof terraces and views across Manchester and the River Irwell.

With planning approved, the next step was securing a funding package capable of supporting construction through to completion.

The Challenge

Although the scheme offered strong commercial potential, it required a lender with experience of funding larger residential developments.

The client also wanted a funding solution that would:

• Support construction through a stretched senior debt facility.
• Avoid the need for Personal Guarantees (PGs).
• Maximise available leverage while maintaining a commercially viable structure.

In addition, the funding needed to work alongside the project’s sales strategy, as apartments were being marketed off-plan before construction was complete.

Our Solution

Positive Commercial Finance sourced a specialist lender able to provide a Costs to Complete Stretched Senior Development Finance facility.

The lender recognised the strength of the planning consent, the developer’s experience and the commercial viability of the scheme.

Importantly, the facility was structured without requiring Personal Guarantees, giving the developer greater flexibility while reducing personal exposure.

The apartments were successfully pre-sold off plan, with purchaser deposits contributing towards construction costs and significantly reducing the developer’s cash contribution.

Deal Structure

• Loan to Gross Development Value (LTGDV): 70%
• Facility Amount: £10,000,000
• Interest Rate: 8.75% per annum
• Arrangement Fee: 2%
• Exit Fee: None
• Term: 15 months
• Personal Guarantees: Not required

The Result

The developer secured a £10 million funding facility that supported construction of the entire development while avoiding the need for Personal Guarantees.

Combined with strong off-plan sales, the funding structure reduced the developer’s upfront capital requirement and provided confidence throughout the build programme.

This case study demonstrates how Residential Development Finance can be tailored for larger apartment developments, combining high leverage with flexible lending structures to support ambitious residential projects.