Assetz Capital has completed a £2.73 million development finance facility for the refinance and completion of Dalmahoy Farm Villas, a part-completed residential scheme in Midlothian, approximately 12 miles south west of Edinburgh city centre.
The gated development comprises eight detached homes with four and five bedrooms. Four units have been delivered, with the finance facility structured to complete the remaining three units. All properties feature EV charging points and solar panels, achieving an EPC A rating.
Facility structure
The 18-month facility operates at 63.34% loan-to-value, incorporating approximately £1.5 million for day-one refinance against the existing site position and around £950,000 of development finance for the remaining construction work.
Ciaran McGivern, regional director north at Assetz Capital, said: “We’re pleased to be backing an experienced SME developer through the refinance of a part-complete site and into the final stages of construction, providing the flexibility needed.”
The transaction reflects Assetz Capital’s approach to providing development finance to smaller housebuilders managing part-complete schemes, where refinancing existing banking facilities while funding remaining construction requires flexible lending arrangements.
Market context
The deal comes as SME housebuilders face ongoing challenges in the current development finance market. Recent cost pressures across the property sector have affected both developers and agents, whilst broader industry workforce changes continue to reshape the residential market landscape.
The Dalmahoy Farm Villas scheme targets the Edinburgh commuter belt market, with established road and rail connections into the city centre. The part-complete nature of the development required a lender willing to assess the specific position of the site and provide both refinancing and construction funding.
McGivern added: “This is all part of our commitment to supporting SME housebuilders right across the UK, ensuring high-quality homes come to market and supporting the development of local communities.”
