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Implementing property bonds into funding structures

This year we have been evolving our funding models to provide development finance for UK property projects, not only via secured debt facilities and private equity placements, but more recently with the use of property bonds. The question becomes one of choice and suitability, as costs and timing are key considerations when deciding which type of funding to employ.

We recently arranged a property bond for a hotel joint venture, where the property already existed and had a tangible value, but had upside potential via a schedule of improvement works and operational streamlining – if the client had the funds to acquire the site. Whilst being set up as a joint venture, it wasn’t feasible to deploy private equity investment due to the extended timeframes required for improving and enhancing the operational position of the hotel. Accordingly we structured a first charge property bond to allow a 3yr horizon for an exit or refinance of the property – giving investors a secure asset backed medium term investment, and at the same time giving the hotel company access to capital to acquire and improve a core operational asset.

To discuss funding models suitable to projects across the UK, we invite you to look over our website at or to contact us directly on:

+44 (0)7718 966556 /