Ireland Property Development Finance
We arrange property development finance in Ireland for developers and investors who need €5m to €500m+. We are a broker with access to lenders, so we find the right lender for your scheme, negotiate the terms and manage the process through to drawdown.
What is Ireland property development finance?
It is a loan that pays for the land and the construction of a scheme. The lender releases the money in stages as the build progresses, and the loan is repaid from the sale of the units or by refinancing the finished scheme. It is secured on the site.
Ireland development loans for larger schemes
We focus on larger projects, from €5m up to €500m+. We do not arrange self-build loans or small facilities. Irish banks, non-bank lenders and international funds all lend on development, and they differ on how much they will fund, how fast they move and what they ask for. We take your scheme to the ones that fund at your size and in your location, and compare their offers for you.
Ireland development loans
What the loan can cover
A development loan can fund:
- The purchase of the land, where you do not yet own the site
- Construction costs, including the building contract and site works
- Professional fees, such as architects, engineers and project managers
- Interest during the build, normally added to the loan
- Lender fees and a contingency for cost increases
The lender decides how much of each it will fund. Your own equity usually goes in first, and the loan is then released in stages as the build progresses.
Schemes we finance in Ireland
- Housing estates and apartment schemes for sale
- Build-to-rent apartments
- Student accommodation
- Co-living and senior living
- Hotels and aparthotels
- Offices, mixed-use and urban regeneration schemes
- Industrial and logistics units
- Land with planning permission, for phased delivery
Where we arrange development finance in Ireland
We arrange finance for schemes across the Republic of Ireland. Lender demand is usually strongest in and around the main cities:
- Dublin: city apartments, build-to-rent, student and co-living schemes, and regeneration sites in the city and the docklands
- Greater Dublin: housing and apartment schemes in Kildare, Meath, Wicklow and the commuter towns
- Cork: city centre apartments, housing and mixed-use schemes in the city and its suburbs
- Galway: residential, student and hospitality schemes
- Limerick and Waterford: housing, apartments and regeneration schemes
- Other towns: Drogheda, Dundalk, Athlone, Kilkenny and similar regional centres
Schemes outside the main cities can still be funded. Lenders will look harder at demand for the product, so a strong sponsor, pre-sales or an operator in place all help. If your scheme is in Northern Ireland, ask us and we will tell you how we can help.
Who we work with
- Experienced developers with completed schemes behind them
- International developers and funds building in Ireland with a local team
- Investors forward funding or joint venturing a scheme
- Owners of land with planning permission who want to fund the build without selling
The borrower is normally a special purpose company (SPV) set up for the scheme. It can be incorporated anywhere in the world.
The stages of a development loan
Most development loans move through three stages:
- Land stage. The loan, or your equity, pays for the site. The lender takes a charge over the land and checks the title and the planning permission.
- Construction stage. Once the conditions are met, the lender releases funds in stages as the work is completed. A surveyor acting for the lender checks progress before each payment.
- Sales and repayment stage. As units are sold, or when the scheme is refinanced, the loan is repaid and the lender releases its security.
Knowing which stage you are at helps us choose the right lenders. Some fund all three stages in one facility, while others only fund the build.
How it works
- Send us the scheme. Tell us the location, planning position, costs, expected sales value, the loan you need and your experience.
- We approach lenders. We take it to the banks, debt funds and private lenders that fit.
- Compare terms. We compare the offers and negotiate the best one for you.
- Valuation and legal work. The lender values the scheme and your solicitors and theirs complete the paperwork.
- Drawdowns. Funds are released in stages as the build progresses.
- Repayment. The loan is repaid from sales or a refinance.
The lenders we approach
We do not rely on one lender. Depending on your scheme we approach:
- Banks, which are often the most competitive on price but can be more cautious on leverage and want to see strong sales
- Debt funds and alternative lenders, which tend to be more flexible on structure and speed
- Private lenders and family offices, which can move quickly on well-presented schemes
- International lenders looking to fund Irish projects for experienced sponsors
We tell you which type suits your project and why, and we compare their terms side by side so you can decide.
Ways to structure the funding
Large Irish schemes are often financed in more than one layer:
- Senior development loan: the main loan, secured on the site, which pays for the land and the build
- Joint venture or equity partner: an investor puts in equity alongside you, often to reduce the cash you need to commit
- Forward funding or forward sale: an investor agrees to buy or fund the finished scheme, which gives lenders more comfort on repayment. This is common for build-to-rent and apartment blocks
- Syndicated loans: very large facilities shared between several lenders
We advise which structure suits your scheme and approach the right lenders for it.
What lenders want to see
- Your track record on similar schemes
- Proof of ownership of the land, and planning permission in place with any appeal period over
- A clear budget and sales value, with a realistic programme
- A builder and professional team you can name
- Your own equity in the scheme
- Sales, reservations or an operator in place where the scheme needs them
- A clear plan for how the loan will be repaid
Documents to have ready
- Company details and an ownership chart for the borrower and sponsor
- Your track record, with completed schemes, costs and sales
- Land title and proof of ownership, or the purchase contract
- Planning permission and any conditions attached to it
- A development appraisal showing costs, sales values and profit
- Cost plan, programme and the building contract or tender
- Architect plans and a list of the professional team
- Sales evidence, reservations or operator terms
- Evidence of your equity and where it comes from
- Recent accounts and a net worth statement for the sponsor
Having these ready shortens the time it takes to get firm terms.
How to improve your chances
- Show a clear profit after all costs and interest, with room for cost rises
- Put real equity in ahead of the lender
- Use a builder with a proven record on a fixed or capped price
- Engage your Irish solicitor and tax adviser early
- Be open about any problems at the start, because lenders find them in due diligence anyway
- Give us the full picture so we approach the right lenders first time
Exit and repayment
Lenders look at how the loan will be repaid before they agree it. The usual routes are:
- Sale of units as they complete, including reservations signed before completion
- Sale of the whole scheme or a block to an investor, including forward sales of apartment blocks
- A forward sale agreed before construction starts
- Refinance onto a longer term loan for build-to-rent, hotel or commercial schemes
- Development exit finance to repay the build loan while the last units sell
What it costs
A development loan normally has interest, an arrangement fee, an exit fee, and the lender’s valuation and legal costs. Interest is usually added to the loan during the build rather than paid monthly. Terms depend on your scheme, your experience and the lender. We agree our own fee with you before we approach anyone, and we will give you an indication of likely terms once we have seen the project.
Why use a broker
Lenders differ widely on how much they will lend, what they charge and what they ask for. We deal with them every day, present your scheme the way their credit teams read it, and save you approaching them one by one. You deal with one team from first enquiry to drawdown.
Related finance
- Development finance overview
- Bridging loans in Ireland
- Development exit finance
- Development finance in Italy, the Netherlands, Spain, Portugal, Germany and France
Talk to us about your Irish scheme
Send us the basics through the enquiry form and we will come back to you with an indication of lender appetite and likely terms.
FAQ
What is the minimum loan for development finance in Ireland? We arrange facilities from €5m, and up to €500m+ for the largest schemes.
Can a foreign developer borrow in Ireland? Yes. Lenders lend to an SPV, which can be incorporated in any country, and they check the source of your equity.
Do I need planning permission first? Lenders generally want planning permission in place before they fund construction. Some will fund the land earlier where planning is secure or likely.
How is the loan repaid? From unit sales, a sale of the whole scheme, a forward sale, or a refinance once the scheme is complete.
How much can I borrow? It depends on the scheme, the sponsor and the lender. Send us the project and we will tell you what looks achievable.
How long does it take to arrange development finance in Ireland? It depends on how ready the scheme is. Valuation and legal work usually take the longest, so having your documents ready saves time.
Do I need pre-sales? For homes for sale, lenders usually look for reservations or sales. For build-to-rent, hotels and commercial space they look at forward sales, operator terms or tenants.
Can you arrange the land purchase and the build together? Yes. Some lenders fund the land and the build in one facility and others fund the land first. We will tell you which approach suits your scheme.
What security does the lender take? Normally a first charge over the site, plus security over the borrower’s shares and key contracts. Your Irish solicitor handles the registration.
Are you a lender? No. We are a broker. We place your scheme with banks, debt funds and private lenders and negotiate the terms for you.
Do you charge a fee? We agree our fee with you in writing before we approach any lender.