While structured investments have long been used in corporate finance, they’re now gaining significant traction in the UK property sector. As developers look for ways to finance projects without relying solely on bank loans or giving away equity, these investment instruments have emerged as a smart and strategic option.
Their appeal lies in the ability to tailor them to the specific needs of each development. A well-structured arrangement allows a developer to raise funds from a mix of private investors, institutions, or family offices—often alongside existing lending facilities. It doesn’t have to be all or nothing. These investments can form part of the capital stack, working in tandem with traditional finance and shareholder contributions.
Importantly, they can provide a route to funding without diluting ownership. Developers can retain control of their project and use these instruments to bridge funding gaps, manage cash flow, or finance specific phases of construction. In some cases, the structure can include the option to convert into equity at a later stage or under certain agreed conditions.
In today’s market, developers are seeking more flexible and responsive funding models. With the ability to defer interest, bring in investors over time, and align repayment with sales or refinancing, these types of investments offer just that. It’s a development finance solution that’s gaining momentum—and one we believe will continue to grow in relevance over the coming years.
Interested in investing?
Loan notes could offer you fixed returns, asset-backed security, and a clear exit strategy-providing a flexible and structured way to get involved in property development without taking on the risks of direct ownership.
