Development Loan
We offer a range of bespoke financing solutions for development projects, together with pre-development bridge finance for site acquisition, and post-development exit finance.
Our approach
We provide unregulated senior loan facilities for up to 30 months to experienced developers in all regions in the UK and across the full range of property asset classes.
Facility length
Up to 30 months
Target facility size
£5m – £30m
Geography
Our funding is available across the UK
Security and credit support
First charge on property and borrowing vehicle
Cost over-run guarantee from acceptable guarantor(s)
Net advances against developments
Capped at 70% of gross development value, 85% loan to cost
Asset type
We have lent across a range of sectors including: Residential (multi-unit), Commercial, Office, Hotel, Care Home & Supported Living
Construction criteria and finance structure
Construction criteria
- Ground up or conversion of existing building
- Third party contractor
- Typically JCT design and build contract
- Demonstrable track record of developer
Finance structure
- Flexible structures available to address planning enhancement scenarios
- Pricing available on either a drawn or all funds basis
- Interest rolled up and payable at maturity
Indicative fees and interest 1
| Loan to gross development value | Fixed interest rate p.a. on drawn funds | Fees on a 30 month transaction |
|---|---|---|
| 70% | From 8.5% p.a. fixed | 1.5% of facility in 1.5% of facility out |
Fixed price lending
Our funding is typically provided on a fixed basis, not as a margin over Libor or other reference rates, therefore developers can have certainty over their cost of funds even in a rising interest rate environment.
We are also able to lend on a total funds basis rather than on drawn funds, if preferred.
1 Interest and fees are indicative only and will depend on the individual characteristics of the transaction
Recent projects include:
Edinburgh Airport Hotel
A facility of over £17m to develop a branded hotel on Edinburgh Airport land.
Former Dairy Depot, Bloomsbury, London
A facility of over £17m for the acquisition and development of a former dairy depot in Bloomsbury, London, into eight apartments, two houses and office space.
Key Documents
The activities of Pre-Development Bridge financing, Development Loan financing, including Development Exit Lending and Refurbishment Finance do not constitute regulated investment business under the Financial Services and Markets Act 2000. As such, clients of Puma Property Finance will not be afforded the protections available under the rules of the Financial Conduct Authority (“FCA”) and will not be eligible for compensation under the rules of the Financial Services Compensation Scheme (“FSCS”).
Reliance and Liability
All forward looking statements in this presentation (including the various terms “expects”, “may” or “will”) involve risk and uncertainty because they relate to future events or circumstances and should not be taken as any representation that such trends or activities will continue in the future. Although Puma Property Finance has taken care to ensure that the information in this presentation is accurate and complete, Puma Property Finance, Puma Investments and their respective affiliates, directors and employees assume no responsibility or liability whatsoever for the accuracy or completeness of the information or for any direct, indirect or consequential loss or damage howsoever arising. Any facts or statements in this presentation should not be relied upon. Neither Puma Investments nor Puma Property Finance nor any of their respective affiliates have any responsibility to update any of the information provided in this presentation.