Getting Development Finance Right for Multi-Unit Projects

Introduction

Financing a single property project can be complex enough — but when it comes to multi-unit developments, the stakes (and sums) rise considerably. Whether you’re building a block of apartments, converting a large house into several flats, or delivering a mixed-use scheme, ensuring your development finance is structured in the right way is crucial to maximising returns and keeping the project on track.

Why Structuring Matters

Lenders assess multi-unit projects differently from single-unit developments. Cashflow timings, staged drawdowns, and exit strategies all become more complex. Get the structure wrong, and you may face funding gaps or unnecessary costs. Get it right, and you’ll benefit from smoother progress and stronger profitability.

Key Considerations When Approaching Development Finance

1. Define your exist strategy early. Will you sell all units, refinance, or retain some for rental? Lenders want to see a clear plan. The right exist can also influence which funding option is best.

   
   

2. Break down your cashflow. Multi-unit builds involve staged costs. Presenting a detailed cashflow forecast helps lenders understand drawdown requirements and the project profile, and reduces the risk of delays in accessing funds. Work with a reputable contractor or seek input from a Quantity Surveyor early to establish a robust cashflow.

   
   

3. Understand your contribution. Most development lenders will fund a percentage of land and build costs, but not usually 100%. Be clear on your equity contribution, and explore mezzanine of joint venture funding if required.

   
   

4. Stress-test the project. What happens if sales take longer than expected, if costs rise, or if the prices you achieve are not as high as you'd hoped because the market dipped? Stress-testing (or sensitivity analysis) shows lenders (and yourself) that the project can weather real-world challenges.

How Adler Green Adds Value

At Adler Green, we combine access to competitive funding with first-hand experience in development and investment. That means we don’t just secure the finance — we help shape the structure around your goals, giving you confidence that your project is built on solid foundations.

Conclusion

Multi-unit developments demand careful planning, and the finance structure you choose can make or break the outcome. If you’d like to discuss your next project, get in touch with us to explore the most effective funding strategies.