Land Acquisition
Financing the acquisition of development sites prior to or alongside the construction phase.
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DEVELOPMENT FINANCE
Development Finance
Financing solutions for residential, commercial and mixed-use development projects across European markets.
Financing development from acquisition to completion
KSCG advises developers, investors and sponsors on the structuring and placement of development finance across a wide range of real estate projects.
Development financing can include land acquisition, construction costs, professional fees, interest reserves and other project-related expenditure.
The optimal financing structure depends on the asset, planning status, sponsor experience, development programme, projected values and exit strategy.
Typical Requirements
Where development finance is used
Construction Funding
Senior and structured capital to fund build costs, professional fees and development expenditure.
Conversion
Funding for the conversion of existing buildings into new residential, hospitality, commercial or mixed-use assets.
Refurbishment
Finance for substantial refurbishment, repositioning and value-add business plans.
Phased Development
Financing structures designed around projects delivered in multiple phases or development stages.
Development Exit
Refinancing solutions following practical completion or during the final sales and stabilisation period.
Capital Structure
Senior debt, structured capital and equity
Depending on the transaction, development finance may consist of a single senior facility or a broader capital stack.
KSCG can assess senior debt, stretch senior, subordinated debt, preferred equity and joint venture capital where required to achieve an appropriate funding structure.
Underwriting
Key financing considerations
Loan to Cost
The relationship between the proposed facility and total development cost.
Loan to Value
Leverage relative to current value and projected development value.
Gross Development Value
The projected market value of the completed development.
Sponsor Equity
The amount and timing of sponsor capital invested into the transaction.
Planning & Permits
The status of planning approvals, permits and other development consents.
Exit Strategy
Repayment through sales, refinancing or long-term investment finance.
Our Approach
From financing strategy to closing
KSCG works with clients throughout the financing process, starting with the assessment of the development business plan and proposed capital structure.
We identify suitable lenders and capital providers, prepare the financing approach, coordinate lender engagement, compare proposals and support negotiations through documentation and closing.
Analyse
Review the project, capital requirement and exit strategy.
Structure
Determine the most appropriate debt and capital structure.
Source
Identify suitable banks, debt funds and alternative capital providers.
Execute
Manage lender engagement, negotiation, due diligence and closing.
Markets
European development finance
Netherlands
Development funding for residential, commercial and mixed-use projects.
Spain
Development finance for domestic and international sponsors across key Spanish real estate markets.
European Markets
Cross-border financing through institutional and alternative lender relationships.
Discuss a development financing
Speak with KSCG about the financing structure, leverage, lender appetite and execution of your development project.
Discuss a transaction→