Cenydd Rowlands on constructing the right deal for SME property developers
With transactional activity increasing and stable property
prices, Welsh property developers can take full advantage of the
confidence beginning to return to the market.
The Welsh construction sector received a welcome injection of
capital in May this year with the launch of the £10m Wales Property
Development Fund which backs small-scale, non-speculative
commercial and residential property development schemes.
Smaller-scale schemes promise to bring fresh
impetus to a sector hit by issues such as weak demand, falling
property values and a lack of available finance in recent
Backing commercially viable schemes
Finance Wales can now provide small and medium-sized
construction companies with short-term loans to back a range of
schemes, which have secured planning permission, including:
- New housing developments.
- New office, industrial and warehouse
- Refurbishment projects.
We’ll need to understand how our loan will be repaid - what
plans are in place to sell or let the property upon completion, for
instance? Profitable returns will enable Finance Wales to
continue backing such projects over the next five years.
Short-term funding – maximum impact
With repayment terms up to 24 months, our property development
loans of between £250,000 and £1m can fund projects with a maximum
loan-to-value ratio of 65% based on the property’s predicted gross
Our loans can also be combined with other
funds to get commercially viable schemes off the
The right funding profile
We can structure our loans with repayment profiles that take
account of key development phases and completion dates.
Contact us if you’re advising a client
with a construction scheme that needs backing.