Property Development Finance for an Eight-Home Development

This case study shows how we secured a combination of senior debt and equity funding to provide 100% development finance for an experienced developer building eight new homes in the South West.

The Challenge

Our client was an experienced property developer with a proven track record.

However, following financial difficulties during the last recession, they had returned to working as a contractor. Although they had continued to build valuable experience, they no longer had the capital needed to fund a new development.

The opportunity was strong.

The proposed scheme involved the construction of eight new homes and offered healthy projected profit margins. Even so, the lack of available cash meant traditional development finance was unlikely to provide the full funding required.

The client needed a solution that would:

• Fund the entire development without a cash contribution.
• Recognise their experience rather than focus solely on recent financial history.
• Combine senior debt with equity funding.
• Move quickly so the project could proceed without delay.

Our Solution

Positive Commercial Finance sourced specialist funding partners prepared to take a commercial approach.

Rather than relying purely on standard lending criteria, the lenders met the client, reviewed previous development projects and considered the successful contracting work completed in recent years.

This gave them confidence in both the client’s experience and the strength of the proposed scheme.

As a result, we arranged a funding package combining senior development finance with equity finance, providing 100% of the development costs.

The full funding structure was approved within days, allowing the client to move forward without investing their own capital.

Deal Structure

Senior Development Finance

• Loan to Cost (LTC): 80%
• Interest Rate: 1% per month
• Arrangement Fee: 1%
• Exit Fee: 1%
• Term: 15 months

Development Equity Finance

• Loan to Cost (LTC): 20%
• Profit Share: 50/50
• Term: 15 months

The Outcome

The client secured a fully funded solution that combined senior debt with equity finance, enabling construction of the eight-home development without requiring their own cash contribution.

By presenting the client’s experience and the strength of the project, Positive Commercial Finance secured funding that many conventional lenders would not have considered.

This case study demonstrates how Property Development Finance, combined with specialist equity funding, can help experienced developers unlock new opportunities even after previous financial setbacks.