DEVELOPMENT FINANCE | FUNDING FOR COMMERCIAL DEVELOPMENT PROJECTS
Sourcing finance to fund the development of a commercial property project without pre-lets or pre-sales in place has never been easy. In the years after the credit crunch it became close to impossible but at the same time companies became more reluctant to commit to pre-lets and if they were considering a pre-let they were also expecting better lease terms such as rent free periods and lower rents. This has meant relatively few commercial projects have been delivered except for certain prime office areas of London like the square mile where corporate tenants continue to demand high quality floor space.....
PRIME RESIDENTIAL PROJECTS | FUNDING MARKET COOLS
In the dark days of 2009 / 2010 when most development lenders were in hiding, the one type of project that might get them to pop their head out would be a prime residential developments somewhere like Knightsbridge or Belgravia. It was probably the area of the residential market that took the smallest hit in the downturn and certainly recovered very rapidly as international buyers saw certain London postcodes as the safe haven in the property market. The net result was values in these areas sored for several years and we saw clients selling very high spec apartments in the best postcodes for around £6,000 per sqft in late 2013. However in 2014 we’ve seen a few high value properties stick on the market and volume of sales has certainly fallen............
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