Developer & project finance

From the plot to completion — financed.

Project development rarely fails on the yield, but on equity at the right time and on a bank that understands the plan. I structure the senior finance for your residential or commercial project and approach the houses that actually lend — banks and debt funds, bank-independently under §34c GewO.

What does a lender require for development finance?

Three things, before terms are discussed at all. First, equity: loan-to-cost averaged 66,3 percent of total costs in the second quarter of 2026. Roughly a third has to come from the developer, directly or through subordinated capital. Second, pre-sales: a residential scheme with around 40 percent of units sold carries a larger subordinated tranche on better terms than a speculative commercial development. Units already sold or let reduce the funder's risk immediately. Third, phase logic: site acquisition, planning through to permission, construction and sales each have their own funders and their own security. A track record helps, but its absence is not a knock-out. The senior tranche, secured in first rank, is brokered under section 34c GewO; the subordinated piece is coordinated through licensed partners. Senior funds are drawn down against construction progress rather than paid out at once. The costs incurred before planning permission usually fall to equity, because there is no robust security until then.

The phases — and where capital is needed

A project development runs in stages, and each stage has its own financing question. I think about financing from the end: which capital provider fits which phase, and how do the components mesh together?

PhaseCapital needTypical lender
Land purchasepurchase price + incidental costs, often fastbank, debt fund, short-term bridge capital
Planning & building rightsupfront costs through to approvalequity, supplemented by mezzanine via partners
Construction phasemain volume, drawn down by build progresssenior loan (bank / debt fund)
Sales & handoverinterim financing until the sale proceedsbridge capital, final settlement

What capital providers look at in projects

Whoever provides project capital examines not you as a person, but the viability of the plan. The decisive adjusting screws:

Loan-to-cost & loan-to-value

How much of the total costs or value is to be debt-financed? The higher the ratio, the more expensive and selective the capital.

Pre-sale / pre-letting

Sold or let units lower the lender’s risk — and with it your terms.

Track record

Completed projects are your strongest argument. But even the first genuine developer gets capital — via the right houses.

My role: I broker the loan side — the first-ranking secured senior finance — under §34c GewO. If the equity isn’t enough, I coordinate the subordinated component via licensed partners (more on that on the page Mezzanine & equity). So you get the overall structure from a single source.

When the house bank waves you away

Banks assess project risks conservatively — a rejection often only means the plan does not fit that one house’s standard grid. Specialist financiers and debt funds accept different risk profiles, shorter track records or higher loan-to-values. I know these addresses and approach them in parallel, instead of sending you from bank to bank.

Example constellations from practice

Three typical starting situations as they regularly reach me — anonymised and simplified to show the structure. These are examples, not promised terms: interest, loan-to-value and components always depend on the specific project, the security and the capital provider.

New build · residential

Project developer, house bank hesitates

A residential project with secured land and building rights, but the house bank requires more pre-sale than the developer can deliver at the start. Approach: senior loan via a debt fund with a lower pre-sale ratio, equity gap closed via a subordinated component from a licensed partner.

Plot · speed

Acquisition under time pressure

An attractive plot, a short deadline to the notary appointment, a classic bank commitment too slow. Approach: short-term interim financing against the plot as security, later repaid by the long-term project financing.

Holding · capital

Capital from the holding

A portfolio holder with a debt-free property wants to release equity for the next project. Approach: refinancing of the holding, the released amount serving as equity in the follow-on plan.

Frequently asked questions

Do you also finance smaller projects?
Yes. While the big houses target institutional volumes from double-digit millions upwards, my home is exactly the mid-sized and smaller segment that falls between the house bank and the large advisory firms.
How much equity must I bring?
That depends on the project, phase and security. Senior lenders usually expect an equity share; if that isn’t enough, the gap can be partly closed via subordinated capital — coordinated through licensed partners. I check your specific structure free of charge.
How does project capital cost compare to a normal mortgage?
More. Project finance is riskier than financing a finished, let property — and that shows in interest and fees. The more security (pre-sale, equity, track record) you offer, the cheaper it gets.
Do you also give tax or legal advice?
No. I broker financing under §34c GewO. Tax and legal questions you clarify with your tax adviser and notary — I work closely with them where needed.

Present your project to me

Message me on WhatsApp or book a 30-minute call. The first check of your plan is free.

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