Imperial Blue provided a £2.5 million senior development facility to fund the construction of a new residential scheme in the East Midlands.

The facility provides committed capital through the development programme, with drawdowns structured around construction progress, development expenditure and the remaining cost to complete.

The transaction was structured on a peak-debt basis, allowing sales proceeds and loan prepayments to reduce the amount outstanding during the build, with funding capable of being recycled subject to the agreed facility limits.

Why the structure worked

The funding structure recognises that the cash requirement of a residential development changes as construction progresses and completed homes are sold.

This allows the developer to use incoming sales proceeds efficiently while retaining access to the committed funding required to complete the remaining development.

The result is a controlled senior development facility combining construction drawdowns, sales-linked debt reduction, funding recycling and ongoing cost-to-complete and leverage controls.

Why Developers Choose Imperial Blue

This transaction demonstrates Imperial Blue’s ability to provide institutional-quality committed development finance for smaller residential schemes, while retaining the flexibility associated with bespoke private lending.