The property development finance market is known for its versatility and growth, driven by the ability to adapt various financing elements to meet specific project needs. Revelle Capital embraces this flexibility, offering solutions that can be customized for short, medium, or long-term objectives, using diverse assets as collateral. Our development finance offerings can be broadly categorized into three main types:

Purchase Finance

Most property development projects begin with the acquisition of a property that needs redevelopment. Revelle Capital addresses this initial need through purchase finance, typically funding a substantial portion of the purchase price. Investors are required to cover the remaining amount, ensuring they have a vested interest in the project's success. This alignment of interests is crucial for maintaining focus and commitment throughout the development process.

Project Finance

The size and scope of the project will determine how funds are disbursed. Revelle Capital typically releases funding in stages, contingent upon the successful completion and inspection of each phase. This method not only minimizes financial risk for both the investor and the lender in case the project encounters difficulties but also sharpens focus as the project progresses. Investors must be prepared for short-term cash flow needs until funds are reimbursed after each stage is completed and approved.

Flexible Development Finance

While traditional high street banks continue to hold a significant share of the property development finance market, their dominance is gradually being challenged by private banks, private equity firms, challenger banks, and peer-to-peer lending platforms. Revelle Capital is at the forefront of this shift, offering more flexible financing options that are tailored to fit the unique demands of each client's project. This approach allows for more personalization than standard, off-the-shelf financial products, providing invaluable adaptability and potentially better terms for complex development scenarios.

Revelle Capital's expertise and innovative funding solutions ensure that each client receives a finance structure that not only meets but exceeds their project requirements and expectations.

Specialist lenders have emerged as pivotal players in the real estate development finance market, stepping in as traditional high street banks scaled back their involvement due to heightened risk aversion. These lenders are adept at crafting bespoke financing packages that are not only efficient but also cost-effective, tailored to meet the unique needs of each development project.

Comparing these customized offerings to the generic, one-size-fits-all products provided by conventional banks often misses the mark due to the specialized nature of development finance. Specialist lenders bring distinct advantages to the table, including agility, innovative thinking, and the capacity to rapidly assemble and approve financial structures—sometimes within as little as 48 hours. This responsiveness and openness to innovative financing solutions ensure that they are a vital resource for developers looking for quick and flexible funding solutions. The conservative approach of many European banks further cements the role of UK-based specialist lenders as critical facilitators in the property development sector.

Historically, several common barriers made securing development finance challenging, such as liquidity constraints, collateral requirements, the developer's country of residence, their experience, and the property type involved. However, the landscape of property finance has evolved significantly. Specialist finance companies like Revelle Capital now have the expertise to devise financing structures that can navigate even the most complex scenarios.

Today, the primary hurdle in securing funding is the viability of the deal itself. It is crucial that the financial projections make sense. Developers seeking finance must come prepared with a well-defined management plan for the funds, a robust exit strategy, and a compelling case that justifies the need for borrowing. Ensuring that these elements are sound and well-articulated is essential for moving past the traditional barriers and successfully securing the needed finance.

While the development finance market is dynamic and continually evolving, certain fundamental elements remain crucial for lenders. These include the borrower's development experience, the Gross Development Value (GDV) of the project, available collateral, and the reliability of third-party contractors involved. Another critical factor is the borrower's skin in the game, typically assessed by how much personal capital they have invested in the project.

Despite these traditional criteria, it's sometimes beneficial to approach affordability from a different angle, considering possible exit strategies such as refinancing, an outright sale, or a phased sale spanning 12 to 18 months. It's essential to assess whether the initial deal is financially viable and offers acceptable returns.

At Revelle Capital, our extensive experience in specialized finance translates to greater flexibility in structuring deals and the ability to navigate complex lending challenges. We understand what's important to lenders and are adept at crafting proposals that align with these priorities, ensuring our clients can access the funding they need with minimal obstacles.

In property development finance, the level of leverage a developer can access is crucial and can significantly impact both the scope and feasibility of a project. At Revelle Capital, we offer leverage options that can extend up to 95% Loan to Cost (LTC) and 80% Loan to Value (LTV), depending on the specific details and merits of the project. Such high leverage is possible through meticulous structuring of finance, including the strategic use of senior debt, mezzanine loans, and equity.

However, it's important to understand that leverage is not one-size-fits-all. Various factors influence the available leverage, including the project's location, projected cash flows, developer's experience, and market conditions. Additionally, the cost of the finance is closely tied to the level of leverage, with higher leverage typically attracting higher rates due to the increased risk to lenders.

Developers should consider these variables carefully and work with a knowledgeable financial partner like Revelle Capital to structure the most beneficial financing arrangement. By tailoring the financial structure to fit the specific needs and risks of your project, we help ensure that your development not only proceeds smoothly but also remains financially viable.

Time is often of the essence in property development. Developers need to know how quickly they can expect to access funds once they apply for development finance. At Revelle Capital, we pride ourselves on our ability to move quickly, understanding that timely funding can be critical. Depending on the complexity and the specifics of your project, funding can often be arranged in as little as a few weeks from the initial application to disbursement. We work diligently to streamline the approval process, ensuring that all necessary documentation is in order and that evaluations are completed promptly.

Gaining approval for development finance involves several key factors that lenders evaluate closely. These include the developer’s track record and experience, the viability and potential profitability of the project, detailed project plans, and a robust exit strategy. At Revelle Capital, we guide our clients through the entire application process, helping to prepare and present all required information in the most favorable light. Our expertise in structuring applications increases the likelihood of approval and ensures that our clients are well-prepared for lender scrutiny.