Netherlands Property Development Finance
We arrange property development finance in the Netherlands, often called Holland, 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 Netherlands 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 property.
Netherlands 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. Dutch banks can be selective on development, so larger schemes are often placed with a mix of banks, debt funds and international lenders. We take your scheme to the ones that fund at your size and in your location, and compare their offers for you.
Netherlands development loans
What the loan can cover
A development loan can fund:
- The purchase of the land, or the building to be converted
- 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 the Netherlands
- Apartment blocks and housing schemes for sale
- Build-to-rent and mid-market rental housing
- Student housing and co-living
- Senior living and care residences
- Conversion of offices and other buildings into homes
- Hotels and aparthotels
- Logistics and industrial units
- Offices and mixed-use schemes
- Land with a permit, for phased delivery
Where we arrange development finance in the Netherlands
We arrange finance for schemes across the country. Lender demand is usually strongest in the Randstad and the main regional cities:
- Amsterdam and the Amsterdam region: apartments, build-to-rent, student and co-living schemes, and conversions
- Rotterdam: residential, regeneration and mixed-use schemes
- The Hague: residential, rental and senior living schemes
- Utrecht: residential and rental schemes in one of the fastest growing cities
- Eindhoven and Brabant: housing, logistics and mixed-use schemes
- Haarlem, Almere, Amersfoort, Leiden and Delft: housing and rental schemes around the main cities
- Groningen, Nijmegen, Arnhem and Maastricht: student, residential and regeneration schemes
Schemes in other locations 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.
Who we work with
- Experienced developers with completed schemes behind them
- International developers and funds building in the Netherlands with a local team
- Investors forward funding or joint venturing a scheme
- Owners of land or buildings with permits in place who want to fund the works without selling
The borrower is normally a special purpose company (SPV) set up for the scheme. It can be incorporated anywhere in the world, including as a Dutch company (B.V.).
The stages of a development loan
Most development loans move through three stages:
- Land or acquisition stage. The loan, or your equity, pays for the property. The lender takes a mortgage over it and checks the title and the zoning and permit position.
- Construction stage. Once the permits and conditions are in place, 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, permit 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 Dutch lawyers 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 or rental demand
- 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 Dutch 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
Larger Dutch schemes are often financed in more than one layer:
- Senior development loan: the main loan, secured on the property, 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 rental and residential 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 property, and the permit in place or a clear route to it
- A clear budget and sales or rental value, with a realistic programme
- A builder and professional team you can name
- Your own equity in the scheme
- Sales, reservations, a forward buyer 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
- Title and proof of ownership, or the purchase contract
- Permits and zoning documents, including any conditions
- A development appraisal showing costs, values and profit
- Cost plan, programme and the building contract or tender
- Architect plans and a list of the professional team
- Sales evidence, reservations, forward sale terms 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
- Get the permit and zoning position clear early, because it drives what lenders will fund
- 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 Dutch lawyer, notary and tax adviser early
- 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
- A forward sale agreed before construction starts
- Refinance onto a longer term loan for rental, senior living 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
- Commercial finance in the Netherlands
- Development exit finance
- Development finance in Ireland, Italy, Spain, Portugal, Germany and France
Talk to us about your Dutch 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 the Netherlands? We arrange facilities from €5m, and up to €500m+ for the largest schemes.
Is Holland the same as the Netherlands? Holland is the common name for the Netherlands, and it is the same country. We arrange development finance for schemes across the whole country, not just the Holland region.
Can a foreign developer borrow in the Netherlands? Yes. Lenders lend to an SPV, which can be incorporated in any country, and they check the source of your equity.
Do I need a permit first? Lenders generally want the permit in place before they fund construction. Some will fund the acquisition earlier where the permit route is clear.
Can you finance a conversion? Yes. We arrange finance for converting offices and other buildings into homes, as well as new builds.
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.
What security does the lender take? Normally a first mortgage over the property, plus security over the borrower’s shares and key contracts. Your Dutch lawyer and notary handle 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.