Commercial Development Finance for Offices, Industrial and Logistic developments has become limited over the years. This is due to economic and political changes in the Real Estate market.
Many lenders only look at Commercial Development transactions based on a strong secured pre-let on exit or a pre-sale before construction commences. Speculative Development of offices and other commercial assets are deemed too risky for most lenders in the current market.
We have lenders who have potential appetite and expertise to support both pre-let/pre-sold and speculative Commercial Developments.
Exit route, leverage, location and the local real estate climate will often be key determinants of whether terms would be offered by a lender and the level of pricing. In addition, a lender will consider the specific risks of the project and quality of the developer. For speculative Commercial Development Finance, a strong track record is essential for lenders.