Manchester Development Finance Case Studies
Every development scheme has a story. From navigating heritage constraints on Grade II listed warehouses in Ancoats to structuring institutional-grade exit strategies for build-to-rent schemes in Salford Quays, our case studies illustrate the breadth and depth of development finance solutions we arrange across Greater Manchester. These anonymised examples represent real deals structured by our team, showcasing the challenges we solve and the outcomes we deliver for Manchester property developers.
With over £300M in development finance arranged and deep relationships across our panel of 50+ specialist lenders, we have funded projects in every major regeneration zone across Greater Manchester. Whether you are an experienced developer scaling your portfolio or a first-time developer breaking into the Manchester market, these case studies demonstrate how we tailor funding structures to match each project's unique requirements.
Completed Deals Across Greater Manchester
Our development finance projects span every corner of Greater Manchester. Explore the map below to see where we have funded schemes across the region.
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Case Study 1: Ancoats Warehouse Conversion
£4.2M
Loan Amount
75%
LTC
14
Months
24
Units
The Project
An experienced Manchester developer identified a substantial Victorian warehouse in the heart of Ancoats — one of Manchester's most sought-after residential neighbourhoods. The scheme involved converting the four-storey heritage building into 24 high-specification residential apartments, comprising a mix of one-bedroom, two-bedroom, and duplex units. The gross development value was estimated at £7.8M based on comparable sales evidence from recent Ancoats apartment transactions, reflecting the area's strong demand from young professionals and investors drawn to Manchester's Northern Quarter fringe.
The Challenge
The primary challenge on this scheme was the building's Grade II heritage listing, which imposed significant constraints on the conversion design and construction methodology. Manchester City Council's conservation officer required the retention of all original external brickwork, cast-iron columns, and timber roof trusses — features that added both character and cost to the project. The developer's original QS cost plan proved insufficient once these heritage requirements were fully understood, and the scheme required a revised cost schedule that increased the total development cost by approximately 15%. Many mainstream lenders were reluctant to fund the project due to the perceived risk of further cost overruns associated with heritage buildings, and two previous lending applications had been declined before the developer approached our team.
Our Solution
We approached a specialist heritage development lender from our panel who had significant experience funding listed building conversions in Manchester and the wider North West. The lender understood the premium that heritage apartments command in Ancoats and was comfortable with the revised cost schedule, which included a dedicated contingency provision for unforeseen heritage works. We structured a £4.2M senior development facility at 75% loan-to-cost with a 14-month term, incorporating a staged drawdown mechanism aligned to the construction programme. The interest rate was competitive at 8.9% per annum, reflecting the lender's confidence in the Ancoats market and the developer's strong track record of delivering three previous conversion schemes in Greater Manchester.
The Outcome
The project completed on schedule within the 14-month facility term. All 24 units were sold within eight weeks of practical completion, achieving an average sale price 6% above the original appraisal — a testament to the enduring demand for characterful heritage apartments in Ancoats. The developer achieved a profit on cost of approximately 22%, and has since returned to us to fund a further conversion scheme in the NOMA district. This case study demonstrates the importance of working with a broker who can identify specialist lenders with genuine appetite for heritage projects in Manchester's most dynamic neighbourhoods.
Case Study 2: Salford Quays Build-to-Rent Scheme
£12.5M
Loan Amount
70%
LTC
18
Months
68
Units
The Project
A regional developer with a growing portfolio across Greater Manchester planned a 68-unit build-to-rent residential scheme adjacent to MediaCityUK in Salford Quays. The scheme comprised a seven-storey new-build apartment block featuring one-bedroom and two-bedroom units designed specifically for the private rental market, with amenities including a residents' gym, co-working lounge, and rooftop terrace. The total development cost was £17.8M, with a gross development value on an investment basis of approximately £22M. The developer's strategy was to build the scheme and sell the completed, tenanted block to an institutional investor — a model increasingly popular across the Manchester BTR sector.
The Challenge
The key challenge was structuring the development finance to accommodate an institutional bulk sale exit rather than a traditional individual unit sales programme. Most development lenders model their facilities around phased unit sales, and their drawdown and repayment mechanics reflect this assumption. The developer needed a lender who understood BTR economics and was comfortable with a single-event exit upon completion. Additionally, the scheme's total cost of £17.8M placed it at the upper end of the specialist development lending market, requiring a lender with sufficient balance sheet capacity. Salford City Council's affordable housing requirements also needed to be factored into the financial appraisal, as the planning consent included a 20% affordable element delivered through a registered provider partnership.
Our Solution
We identified a specialist BTR-focused development lender from our panel who was already actively funding build-to-rent schemes across Manchester and understood the institutional exit model. The lender had previously funded three BTR projects in Salford and had established valuation methodologies for this asset class. We structured a £12.5M senior facility at 70% loan-to-cost, with an 18-month term that provided sufficient headroom for the construction programme plus a three-month letting and sale period post-completion. Crucially, the facility was structured with a bullet repayment aligned to the institutional sale, avoiding the need for phased drawdown releases tied to individual unit sales.
The Outcome
Construction completed two weeks ahead of the 18-month programme. The developer secured a forward-funding agreement with a major institutional investor at month 14 of the build, achieving a net initial yield of 5.1% — in line with prevailing Manchester BTR market benchmarks. The institutional sale completed within six weeks of practical completion, and the development loan was repaid in full within the original facility term. The developer's net profit after all finance costs exceeded £2.8M, and they have since committed to a second BTR scheme in the Victoria North district, again funded through our brokerage. This project exemplifies how specialist BTR knowledge enables us to source lenders who genuinely understand the institutional rental market in Greater Manchester.
Case Study 3: Stockport Town Centre Mixed-Use Development
£2.8M
Loan Amount
80%
LTC
16
Months
12 + 2
Resi + Commercial Units
The Project
A local developer with extensive knowledge of the Stockport Town Centre regeneration landscape identified a prominent corner site in the heart of the Stockport Exchange masterplan area. The proposed scheme was a mixed-use development comprising 12 residential apartments across the upper floors and two ground-floor commercial units designed for A3/E-class food and beverage use. The total development cost was £3.5M, with a gross development value of £5.2M based on a blended residential and commercial valuation. Stockport's £1 billion town centre transformation programme — one of the most ambitious in Greater Manchester — was driving strong demand for both residential and commercial space, and the site benefited from direct proximity to the new Stockport Interchange transport hub.
The Challenge
Mixed-use schemes present specific funding challenges because lenders must assess two distinct asset classes within a single facility. The commercial element introduced lettings risk that many residential-focused development lenders were reluctant to underwrite, and the relatively modest scheme size of £3.5M total cost fell below the threshold of several larger institutional lenders. The developer also required high leverage at 80% loan-to-cost to preserve working capital for a simultaneous project elsewhere in Greater Manchester. This combination of mixed-use complexity, smaller scheme size, and high leverage requirements meant the developer needed a stretch senior facility — a specialist product that not all lenders offer. The developer had approached two high street banks, both of which declined due to the commercial element.
Our Solution
We sourced a stretch senior facility from a regional challenger lender on our panel who had specific appetite for mixed-use development schemes within Greater Manchester's regeneration zones. The lender valued Stockport Council's significant investment in the town centre as a positive factor, reducing their risk perception on the commercial lettings. We structured a £2.8M stretch senior facility at 80% LTC with a 16-month term. The stretch senior product allowed the developer to achieve the higher leverage needed without introducing a second-charge mezzanine lender, simplifying the capital structure and reducing total financing costs. The interest rate of 9.8% per annum reflected the enhanced leverage, though this was still materially cheaper than a layered senior-plus-mezzanine arrangement would have been. Use our development finance calculator to model similar leverage scenarios for your own project.
The Outcome
The development completed within the 16-month term. All 12 residential units were sold off-plan prior to practical completion, achieving prices approximately 8% above the original appraisal — evidence of the strong demand generated by Stockport's regeneration momentum. The two commercial units were let to independent food and beverage operators on 10-year leases, and the developer subsequently retained these as investment assets within a separate portfolio company. The total profit on cost exceeded 25%, making this one of the developer's most successful projects. This case study demonstrates that stretch senior finance can be an effective alternative to mezzanine for developers seeking higher leverage on well-located mixed-use schemes in Greater Manchester.
Case Study 4: NOMA Office-to-Residential Permitted Development Conversion
£5.1M
Loan Amount
72%
LTC
12
Months
36
Units
The Project
A developer specialising in office-to-residential conversions across Manchester city centre acquired a 1980s office building within the NOMA regeneration district, north of Manchester Victoria station. The building had been largely vacant for over three years, and the developer secured Class MA prior approval from Manchester City Council to convert the existing B1 office space into 36 residential apartments under the expanded permitted development rights. The scheme comprised 28 one-bedroom and 8 two-bedroom apartments, with a total development cost of £7.1M and a gross development value of £10.2M. The NOMA district's transformation — anchored by Co-operative Group's headquarters and the emerging cultural quarter around the Factory International arts venue — made this a compelling location for residential development.
The Challenge
Class MA permitted development conversions present specific challenges for development finance lenders. The prior approval process, while faster than full planning, introduces uncertainties around conditions — particularly regarding adequate natural light, noise assessment, and the impact on the building's commercial character. Additionally, PD conversions are exempt from Section 106 affordable housing obligations and CIL in most cases, which while beneficial for developer returns, means some lenders question the quality of the resulting residential accommodation. The building's floor plates were deep, creating concerns about natural light penetration to central apartments. The developer also needed to demonstrate that the building met the Class MA requirement of having been in continuous commercial use for a qualifying period, which required detailed evidence gathering. Several lenders on initial approach cited concerns about the long-term value retention of PD-converted apartments in the Manchester market.
Our Solution
We identified a specialist lender from our panel with a dedicated PD conversion lending programme and extensive experience of funding Class MA schemes across the North West. This lender had funded over 400 PD conversion units nationally and understood the nuances of the asset class. We structured a £5.1M facility at 72% loan-to-cost with a 12-month term, reflecting the faster build programme that PD conversions typically achieve compared to new-build schemes. The lender conducted their own internal assessment of the NOMA location, concluding that the area's regeneration trajectory and proximity to Victoria station provided strong support for residential values. The facility included an accelerated drawdown schedule to accommodate the front-loaded nature of conversion works, where strip-out and structural modifications occur in the early months of the programme.
The Outcome
The conversion completed one month ahead of the 12-month programme. The developer adopted a dual exit strategy, selling 24 units to individual buyers and retaining 12 units as a rental portfolio. Individual unit sales achieved prices approximately 4% above the original appraisal, benefiting from the rapidly improving perception of NOMA as a residential destination. The retained rental units were subsequently refinanced onto a long-term BTL facility, providing the developer with a recurring income stream while retaining exposure to the NOMA area's continued capital growth. Total profit on the sold units exceeded £1.4M, and the retained units were valued at a combined premium of approximately £380,000 above total cost. This scheme demonstrates how PD conversions in prime Manchester locations can deliver strong returns when funded by a lender who understands the asset class. Learn more about the funding process for your own conversion project.
Case Study 5: Victoria North New-Build Residential Scheme
£8.7M
Loan Amount
75%
LTC
20
Months
45
Units
The Project
A first-time developer with a background in construction management and quantity surveying identified a cleared brownfield site within the Victoria North masterplan area — one of Europe's largest urban regeneration initiatives, with plans to deliver over 20,000 new homes north of Manchester city centre. The proposed scheme was a 45-unit new-build residential development comprising a mix of two-bedroom and three-bedroom townhouses and apartments across three separate blocks. The total development cost was £11.6M, with a gross development value of £16.4M. The site had outline planning consent as part of the wider Victoria North framework, and the developer needed to secure reserved matters approval alongside the development finance facility.
The Challenge
First-time developers face significant hurdles in the development finance market. Most mainstream lenders require borrowers to demonstrate a track record of at least two or three completed schemes before they will consider a facility. While this developer had extensive construction industry experience — having managed projects worth over £50M during his career as a QS and construction manager — he had never borrowed development finance in his own right. The scheme's scale at £11.6M total cost was also ambitious for a first-time borrower, and the Victoria North location, while strategically significant, was at an early stage of regeneration with limited comparable sales evidence. The reserved matters planning application added a further layer of uncertainty, as the development facility could not draw down until full planning was confirmed. The developer had been declined by four lenders before engaging our brokerage.
Our Solution
We prepared a comprehensive borrower profile that reframed the developer's extensive construction management experience as a significant risk mitigant — arguing that a QS and construction manager with 15 years of hands-on delivery experience represented a lower execution risk than many "experienced developers" who rely entirely on third-party contractors. We also leveraged our relationship with Manchester City Council's planning team to provide lenders with confidence around the reserved matters timeline. We structured a £8.7M facility at 75% LTC with a 20-month term from a specialist lender who operates a dedicated first-time developer programme. The lender required an independent monitoring surveyor to provide monthly progress reports — a standard condition for first-time borrowers — and we recommended a Manchester-based firm with Victoria North experience. The facility included a planning condition precedent, with drawdown permitted only upon receipt of reserved matters approval.
The Outcome
Reserved matters approval was granted within eight weeks of the finance application, and the first drawdown proceeded shortly thereafter. The construction programme was expertly managed — a direct benefit of the developer's QS background — and the scheme completed three weeks ahead of the 20-month programme. Sales launched at practical completion, and 38 of the 45 units were reserved within the first 12 weeks of marketing, achieving prices between 5% and 9% above the original appraisal. The remaining seven units sold within a further eight weeks. The developer's net profit exceeded £2.1M on a total equity investment of approximately £2.9M, representing a return on equity of over 72%. The developer has since completed a second scheme — a 22-unit project in Ancoats — funded by the same lender, this time on improved terms reflecting his proven track record. This case study illustrates that first-time developers with genuine construction expertise can access competitive development finance in Manchester with the right broker advocacy and lender matching. If you are considering your first development project, get in touch to discuss how we can help.
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