Property Development Equity Finance for a 24-Apartment Development Near Chester

This case study shows how we combined senior development finance with private equity funding to provide 100% of the required equity, enabling an experienced developer to begin a 24-apartment development near Chester.

The Challenge

Our client was an experienced property developer who had secured an excellent opportunity to build 24 apartments on a site in Cheshire, close to Chester.

The development had been carefully designed to be delivered in phases using timber frame construction, allowing the project to progress efficiently while reducing build times.

Although the scheme was commercially attractive, the developer wanted to preserve their own capital and secure funding for the entire project.

To make the development viable, they required:

• Funding for the land purchase
• 100% of the required equity contribution
• Senior debt to fund the construction costs
• A lender comfortable with timber frame construction and phased development

Finding the right combination of lenders was essential, as very few providers could deliver every part of the funding package.

Our Solution

Positive Commercial Finance structured a bespoke funding solution using two complementary sources of finance.

First, we secured a Senior Development Finance facility that funded:

• 100% of the construction costs
• 50% of the land purchase

The lender was experienced in funding timber frame developments and had established processes for managing the staged payments often required for this type of construction.

To bridge the remaining funding gap, we introduced a specialist private equity partner.

The equity provider supplied 100% of the required equity contribution, allowing the developer to complete the land purchase without investing their own capital.

By combining senior debt with Property Development Equity Finance, we delivered a complete funding package tailored to the client’s development strategy.

Deal Structure

• Equity Funding: £240,000 (100% of the required equity)
• Interest Rate: 15% per annum
• Profit Share: Agreed with the equity provider
• Term: Flexible

The Outcome

The client secured a fully funded structure that enabled work to begin on the 24-apartment development without needing to provide their own equity contribution.

Construction is progressing in phases, with the first phase expected to complete on schedule.

This case study demonstrates how Property Development Equity Finance, when combined with senior development lending, can provide a flexible funding solution for experienced developers delivering larger residential schemes.