Development Finance
At Knightly Group, we act as independent advisors, specialising in crafting funding solutions for a wide range of development projects. Our expertise covers the entire spectrum, from smaller residential ventures to large-scale development schemes, encompassing both new builds and conversions. We seamlessly extend our services to include commercial and mixed-use developments as well.
We take the time to fully understand the intricacies of your proposed project. Our goal is to not only align with your project's timelines but also to secure the most favourable lending terms available. Knightly Group goes beyond simply securing funding. We offer additional support by assisting in preparing crucial financial analyses, managing cash flow projections, and crafting compelling presentations for potential funders. This comprehensive approach ensures your project receives not only financial backing but also strategic positioning for success.
What sets Knightly Group apart is our extensive network of lenders, providing unparalleled access to a diverse range of lending options. This allows us to tailor financing solutions that precisely meet the unique requirements of your development project. But our reach extends beyond just debt. We leverage our key contacts within the equity space and cultivate strong relationships with joint venture partners. This comprehensive approach unlocks your development's full potential, bringing together the perfect combination of financing and strategic partnerships.
With Knightly Group as your partner, you can be confident that your development will receive the specialised attention it deserves, backed by a wealth of experience and a unwavering commitment to securing optimal lending arrangements.
Senior Debt
The Foundation of Your Development Funding
Senior debt acts as the bedrock for most successful property development projects. It's a first-charge loan, giving you a significant advantage as it takes precedence over other financing options. This preferential position translates to the most attractive interest rates available in development finance, allowing you to fuel your project's growth cost-effectively.
Senior debt helps you unlock a substantial portion of the project's total costs, covering not only the land or property acquisition but also construction and other essential expenses. While lenders may require a healthy upfront contribution to demonstrate your commitment and mitigate their risk, this initial investment unlocks a powerful financial tool that propels your project forward.
Stretched Senior Debt
Fuelling Development Profits
Stretched senior debt is a financing option designed to empower experienced developers with even greater leverage for their projects. Unlike traditional senior debt, stretched senior debt offers a higher Loan-to-Cost or Loan-to-Value ratio, allowing you to access a larger portion of the total project cost. This translates to a more efficient use of your own capital, enabling you to focus your resources on strategic aspects of the development.
While stretched senior debt is typically reserved for developers with a proven track record, it offers a powerful tool for those who qualify. By leveraging the strength of your experience, you can unlock this financing option and propel your development project forward.
Mezzanine Finance
Unlocking Additional Capital
Mezzanine finance acts as a powerful tool for developers seeking to maximise the financing potential of their projects. It functions as a second-charge loan, working alongside senior debt (the first charge) to provide additional capital. This additional funding can bridge the gap if a developer's own resources fall short of what senior debt alone can cover.
In essence, mezzanine finance allows you to secure larger and more ambitious development deals. By leveraging the value of your investment property as collateral, you gain access to the required additional capital to bring your vision to life. This translates to greater flexibility and the ability to pursue projects that might otherwise be out of reach.
Equity
Maximising Development Potential with Strategic Equity Partnerships
Beyond securing traditional debt financing, Knightly Group recognises the value of strategic equity partnerships in unlocking the full potential of property development opportunities. Equity investment can provide established developers and professional sponsors with additional capital to support acquisitions, construction and larger-scale development projects.
Knightly Group leverages its extensive network of high-net-worth individuals, family offices, private investment funds and institutional capital partners actively seeking opportunities within the property development sector. These sophisticated investors recognise the value of well-structured projects supported by experienced sponsors, robust financial appraisals and clearly defined exit strategies.
By partnering with Knightly Group, you gain access to our exclusive network of equity partners, alongside the specialist expertise and personal attention of a boutique finance brokerage. Our approach extends beyond simply sourcing capital; we take the time to understand each project's financial structure, sponsor contribution and commercial objectives to identify the most appropriate investment partner.
Equity arrangements are structured around the individual requirements of each transaction, typically involving an agreed participation in the project's ownership or profits. Our focus is on establishing mutually beneficial partnerships that provide not only the necessary capital but also strategic value throughout the development lifecycle.
Joint Venture
Unlock 100% funding with a pivotal joint venture
Joint ventures offer a dynamic and strategic approach to property development, fostering mutually beneficial partnerships where risks and rewards are shared. By bringing together experienced developers and investment partners, these arrangements can provide additional capital, expertise and financial resources to support commercially viable development opportunities. Profit sharing is typically established through a mutually agreed structure, ensuring the interests of both parties are aligned.
For established developers and professional sponsors seeking to undertake larger development projects or expand their existing portfolios, a joint venture can provide a valuable opportunity to collaborate with sophisticated investment partners. Each arrangement is structured around the project's financial requirements, sponsor contribution and commercial objectives.
Our extensive network encompasses private investors, high-net-worth individuals, family offices and institutional capital providers actively seeking opportunities within the property development sector. This diverse pool of potential partners enables us to explore bespoke joint venture arrangements for well-structured developments supported by experienced sponsors and clearly defined exit strategies.
By partnering with Knightly Group, you gain access to our exclusive network of equity and joint venture partners, alongside the specialist expertise and personal attention of a boutique finance brokerage.
Our team acts as a trusted adviser, taking the time to understand your project's individual requirements and identify the most appropriate investment partner whose experience, financial resources and investment objectives complement your own. Our tailored approach fosters collaborative relationships where both parties contribute their respective strengths, helping to minimise risk and maximise the commercial potential of each development opportunity.
Forward Funding
A sophisticated, de-risked approach to large-scale development
Forward Funding is a highly strategic financial structure that enables developers to de-risk large-scale projects by securing both a buyer and construction funding before work commences. In this arrangement, a developer enters into a binding agreement with an institutional investor, such as a pension fund or property company, who agrees to purchase the completed development at a pre-agreed price or yield.
The core of this structure is that the institutional partner not only commits to acquiring the asset but also provides the capital to fund the project's construction. This removes the need for the developer to source traditional development finance. For the developer, the agreed structure can provide greater certainty over the anticipated return and exit strategy, reducing exposure to future market fluctuations. Their role effectively becomes that of a development and project manager, responsible for delivering the asset on time and on budget.
This funding model is particularly effective for developments with a predictable, long-term income stream. Prime candidates include large-scale residential schemes like Build-to-Rent (BTR) and Purpose-Built Student Accommodation (PBSA), as well as pre-let commercial assets such as office blocks, industrial units, hotels, or healthcare facilities.
By partnering with Knightly Group, developers gain access to our extensive network of institutional contacts and our expertise in structuring and negotiating these complex, high-value forward funding agreements.
Exit Finance
Streamline the post-development phase
Knightly Group recognises the inherent challenges faced by developers upon project completion. Securing a buyer for a newly constructed development can be a time-consuming process, and navigating this period can be fraught with stress. Fortunately, exit financing can serve as a bridge between development completion and property sales, providing you, the esteemed developer, with the necessary flexibility to achieve your objectives.
Firstly, exit financing offers a significant advantage over traditional development loans by typically featuring more competitive interest rates. This translates to substantial cost savings, ultimately allowing you to maximise your profit margins.
Secondly, exit financing mitigates the potential disruption caused by unforeseen delays in the sales process. Should your sales timeline extend beyond the initial projections, exit financing provides crucial breathing room. You will no longer be constrained by the looming deadline associated with a development exit loan, affording you additional time to secure a suitable buyer for your development.
Finally, exit financing unlocks the capital currently tied up in your nearly completed development. This financial liberation empowers you to transition seamlessly to your next development project with greater agility. By streamlining this process, you can maintain adherence to your project schedule and minimise the complexities associated with managing multiple projects concurrently.
In essence, Knightly Group's exit financing solutions are designed to streamline the post-development phase, enabling you to focus on what truly matters – realising the full potential of your development endeavours.