Acquisition Finance

Land & Property Acquisition Finance: The Foundation for Your Next Project

 

Every successful property development or investment begins with a crucial first step: the acquisition. Securing the right site or property at the right time is fundamental, yet often requires a specialised and flexible funding partner who understands the complexities of the transaction beyond a simple purchase. Traditional lending can be rigid, especially for assets with future potential rather than immediate income.

 

At Knightly Group, we specialise in structuring dedicated Acquisition Finance. We provide the essential capital to secure land or property swiftly and on the right terms, laying the groundwork for future value creation. We move beyond a transactional approach, acting as your strategic advisor to ensure the initial funding is perfectly aligned with your long-term vision for the asset, whether that involves development, refurbishment, or securing planning consent.

 

Strategic Funding for Diverse Acquisition Scenarios

Acquisition Finance is a versatile tool designed for a range of strategic purposes. We work closely with developers and investors to structure funding that precisely matches their business plan. Our expertise covers:

• Land Acquisition (With or Without Planning): For developers looking to secure a strategic parcel of land. We understand the nuances of funding sites pre-planning and can arrange flexible terms that provide the time needed to navigate the planning process and enhance the site’s value.

• Commercial Property Acquisition: For investors or businesses purchasing vacant commercial assets or properties with short leases. Where traditional commercial mortgages may not be suitable due to a lack of immediate rental income, our acquisition facilities provide the necessary capital to secure the property while a new strategy is implemented.

• Securing a Site Pre-Development: Lock in a valuable site quickly while a more comprehensive development finance package is being arranged. This two-stage approach allows you to secure the opportunity without delay, providing a seamless transition from acquisition to construction.

• Portfolio Expansion: For professional landlords acquiring a new asset to add to their portfolio, especially one that may require refurbishment or stabilisation before it can be refinanced onto a long-term portfolio facility.

 

The Knightly Group Advantage: A Strategic Approach to Acquisition

Our position as a specialist brokerage grants you access to a diverse panel of private funders and specialist lenders who are not accessible on the high street. This allows us to deliver significant advantages and structure finance for more complex situations.

We focus on the asset's potential and your business plan, arranging finance that is built around your exit strategy. Whether the plan is to gain planning consent and sell the land, refurbish and refinance onto a term loan, or roll the facility into a full development loan, we ensure your acquisition finance is a stepping stone, not a hurdle. This forward-thinking approach provides our clients with the confidence and flexibility to execute their strategies effectively.

 

Key Features & Lending Criteria

We source competitive and flexible terms that reflect the unique nature of each acquisition.

• Loan to Value (LTV): Typically, we can source funding up to 75% of the acquisition price or market value. The final LTV will depend on the asset type, location, and the strength of the overall proposal.

• Loan Term: Facilities are flexible, typically ranging from 6 to 36 months, tailored to provide sufficient time to execute the initial phase of your business plan (e.g., achieve planning consent or complete a refurbishment).

• Interest Options: We offer flexible interest structures to manage cash flow effectively:

  • Retained Interest (Rolled-Up): The interest for the entire term is calculated and added to the loan facility, meaning no monthly payments are required. This is ideal for non-income-producing assets like land.

  • Serviced Interest: A more traditional approach where interest payments are made on a monthly basis.

• Borrower Structures: We can arrange finance for a wide range of borrowing entities, including private individuals, partnerships, and corporate vehicles (SPVs).

• Security: Funding is typically secured via a first legal charge over the property or land being acquired.
   

By partnering with Knightly Group, you ensure your next project is built on the strongest possible financial foundation. Contact our team today to discuss how we can secure the acquisition funding you need to bring your vision to life.