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The Development Bank has a different approach to many of the high street banks; they’ve got a vested interest in supporting economic and social growth throughout Wales so understand the bigger picture.

Keri Negron-Jennings, Director of Primesave

 

What is property development finance?

Property development finance refers to funding that is used for residential, mixed-use, and commercial property development projects. It’s a broad term that covers a range of finance options, from mortgages and term loans to bridging and mezzanine finance.

The type of funding you use will largely depend on what your plans are for the property. Take a look at how we can help with property development finance below, or read our guide on how to finance property development. 

 

 

How we can help

We can provide a range of tailored funding solutions for commercial property developers looking to develop new office and/or industrial property in Wales.

Applications for speculative (aka advanced build) developments without any pre-lets or pre-sales are welcome.

We want to help small to medium-sized developers continue to make a big impact in Wales, so we’re offering a number of tailored loans for all kinds of residential property developments. Plus, you can get up to 2% reduction in loan fees for residential developments that meet green standards. 

Applications for speculative developments without any pre-sales interest are welcome.

Mixed use property is on the rise across Wales. And not just in larger towns and cities. If you’re looking to move forward with plans to build a combined commercial and residential property, start by talking to us.

We offer a range of finance options and loans to help get you started. Whether you’ve already got firm plans in place or you’re just at the very start of the process, we can offer a solution that caters to all needs – for speculative and non-speculative developments.

Through the Wales Commercial Property Fund we offer repayable loans for new office and industrial developments in Wales.

  • Loan sizes from £250,000 to £5 million
  • Loan terms of up to five years
  • Speculative and non-speculative schemes (ie with or without pre-lets/pre-sales) are eligible

Grant funding is available alongside our repayable loans. Get in touch with our Property Team to find out more. 

Want to know more?

If you're interested in applying for property development finance and want to know more contact us and we can put you in touch with one of our property experts. 

Through the Wales Property Fund we offer loans for residential and mixed-use developments in Wales.

  • Loans up to 65% of Gross Development Value (GDV), including up to 100% of build costs
  • Loan sizes from £150,000 to £6 million
  • Loan terms of up to two years
  • Up to 2% green incentive reduction in fees

Investment criteria

We're only able to support projects based in Wales.

Before we can help you, you’ll need to give us:

  • Copy of the planning permission confirming approval for what you’re planning to develop.
  • Summary of your development plans and projected costs.
  • Breakdown of the expected Gross Development Value (i.e. the end values once completed).
  • Summary of previous development experience for you and the key individuals involved.

Want to know more?

If you're interested in applying for finance and want to know more contact us and we can put you in touch with one of our experts. Take a look at the Construction Leadership Council's handy guide on becoming a small housing developer, and our FAQs on property development finance below.

We're offering a reduction of up to 2% on residential development loan fees if all of the following green criteria is incorporated into new builds, or a smaller reduction when meeting one or more:

  1. EPC A Rating / Passivhaus status
  2. Non-concrete structures
  3. Non-fossil fuel heating system

Find out more about our Green Homes Incentive 

Through the Stalled Sites Fund we offer loans for residential developments in Wales that can't progress with traditional development funding.

  • Loans up to 75% of Gross Development Value (GDV), including up to 100% of build costs.
  • Loan sizes from £150,000 to £6 million.
  • Loan terms of up to four years.

Investment criteria

We're only able to support projects based in Wales.

Before we can help you, you’ll need to give us:

  • Copy of the planning permission confirming approval for what you’re planning to develop.
  • Summary of your development plans and projected costs.
  • Breakdown of the expected Gross Development Value (i.e. the end values once completed).
  • Summary of previous development experience for you and the key individuals involved.
  • Clear explanation of the issues that have caused the site to stall / the reason why it cannot be progressed with traditional development funding.

Want to know more?

If you're interested in applying for property development finance and want to know more contact us and we can put you in touch with one of our property experts. 

Your questions answered

Our maximum loan size is £6 million. Anything below £150,000 isn’t viable given professional costs involved.

Our rates range from 6.5% to 10.5%. They’re fixed, so there’s no risk of fluctuation – even if the Bank of England’s Base Rate changes. Additional charges apply if payments default.

We prefer to successfully complete a project with a customer before financing multiple projects. Track records go a long way though.

There are no set levels, but we expect customers to share the financial risk. Land purchase funds are often sufficient.

We offer up to 65% of the project’s gross development value.

The maximum term is 48 months for residential properties and 60 months for commercial properties.

We only give property development finance to support a project to completion, and aim to recycle finance quickly to support more customers.

What's next?

Get in touch with our dedicated property team to find out how we could support your project or if you think you're ready, apply today.

Apply now