Imperial Blue provided an £11.6 million senior development facility for a substantial residential development in South West England.

The scheme incorporates a range of new-build homes together with works to an existing dwelling.

The facility was structured on a peak-debt basis, with forecast sales during the construction programme allowing debt to reduce and committed funding to be recycled subject to agreed facility limits.

A bespoke security and funding structure

The transaction required more than a conventional development facility.

Alongside security over the principal development, Imperial Blue was able to take additional collateral to support the funding structure and the level of committed capital available to the borrower.

This allowed the facility to provide substantial committed funding while maintaining disciplined leverage and cost-to-complete controls.

As sales progress, proceeds reduce the amount outstanding and the peak-debt structure allows committed capital to continue supporting the remainder of the development programme.

Why Developers Choose Imperial Blue

This transaction demonstrates Imperial Blue’s ability to look beyond a standard loan-to-cost formula and structure funding around the borrower’s wider asset position, projected development cashflow and sales programme.

For experienced developers with more complex requirements, this can provide a funding solution that is flexible and capital-efficient without relying on excessive leverage.