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?
| Phase | Capital need | Typical lender |
|---|---|---|
| Land purchase | purchase price + incidental costs, often fast | bank, debt fund, short-term bridge capital |
| Planning & building rights | upfront costs through to approval | equity, supplemented by mezzanine via partners |
| Construction phase | main volume, drawn down by build progress | senior loan (bank / debt fund) |
| Sales & handover | interim financing until the sale proceeds | bridge 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.
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.
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.
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.
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?
How much equity must I bring?
How does project capital cost compare to a normal mortgage?
Do you also give tax or legal advice?
Related commercial financing
Capital for your project — from a network, not from one bank.
Commercial finance.
View page → CommercialAcquire, hold, refinance — with the right capital.
Commercial finance.
View page → CommercialBefore the fixed-rate period ends, your lever is at its greatest.
Commercial finance.
View page → CommercialWhen equity runs short — the subordinated component.
Commercial finance.
View page → CommercialWhen capital has to be there in days, not weeks.
Commercial finance.
View page →Present your project to me
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