The lender said this would enable professionals to deploy their capital safely, while making use of Assetz Capital’s expertise and presence across different regions.
The product is aimed at developers who have completed fewer than two projects but have shown they understand the market through their construction, project management or business experience.
The First-Time Developer Finance deal is available up to 70% loan to gross development value (LTGDV) and 85% loan to cost (LTC), with a minimum cash contribution of between 5% and 7.5%, depending on structure and experience.
Andrew Fraser (pictured), chief commercial officer at Assetz Capital, said: “We want to support the smart, ambitious business and property community with the capital and vision to deliver quality homes – but who may not yet have development experience levels set by some of the banks who remain a blocker to wider housing delivery.
“By combining proposed developers’ financial resources with our expertise and structured processes, we can deliver safe, well-managed projects that meet market demand. This is about opening doors responsibly, providing the right leverage for the right projects and people.”
The new-build energy advantage
Sponsored by Halifax Intermediaries
All projects must be fully funded, use straightforward construction methods and be saleable near urban locations.
“By welcoming capable people with capital into the sector, we’re helping to expand the SME developer base, bringing new housing at pace to market. We will look to focus on the project team, contractor, project complexity, location, personal guarantee coverage and strong contingency to ensure the right balance is kept,” Fraser added.
