Industrial development finance
Funding for light and general industrial and trade-counter schemes.
Funding industrial development
Industrial property has been a standout commercial sector, with low vacancy, steady rental growth and strong investor demand for modern units. Light-industrial, general-industrial and trade-counter schemes serve a broad occupier base, from manufacturers and trade suppliers to small businesses and online sellers. That breadth of demand makes well-located industrial schemes among the more dependable commercial developments to fund.
We arrange finance for multi-unit industrial estates, standalone units and trade-counter parks, on both pre-let and speculative bases. Location, unit specification and local vacancy drive values and lender appetite, and institutional demand for the completed product supports a clear exit.
Scheme types we fund
- Multi-unit industrial estates
- Light and general industrial units
- Trade-counter parks
- Manufacturing and workshop schemes
Indicative terms
- Loan to costUp to 65 to 70% senior
- Loan to GDVUp to 60 to 65%
- Key testsLocation, specification, vacancy, exit
- BoostPre-lets and strong local demand
Indicative only. Terms vary by lender, scheme and borrower and are not an offer of finance.
How we fund an industrial scheme
Industrial development is funded on senior debt against cost and the completed value, at competitive leverage that reflects low vacancy and strong demand for the product. Short build programmes and broad occupier demand make lenders comfortable funding well-located speculative estates, while a pre-let supports stretch senior or mezzanine to reduce the equity required.
Lender appetite for industrial
Appetite is broad and competitive, mirroring logistics and warehousing. Banks, challenger banks and debt funds back well-located light and general industrial and trade-counter schemes, drawn by low vacancy and deep investor demand for the finished units. Even speculative multi-unit estates in tight markets find a willing field of lenders.
The exit
The exit is an investment sale to an institution or a refinance onto investment debt once let, with strong demand for modern multi-let industrial. Development exit finance can hold a completed scheme on cheaper money during any letting period.
Finance structures that suit this sector
- Senior development financeCore facility for land and build.
- Stretch senior financeHigher leverage on pre-let or prime estates.
- Mezzanine financeReduces equity on larger multi-unit schemes.
- JV equityFunds the equity on portfolio plays.
Fund a industrial scheme
A view on fundability within one working day.
What drives industrial scheme value
Industrial value is set by rent per square foot across a broad small-business and trade occupier base, capitalised at keen yields reflecting low vacancy and strong investor demand. Lenders model GDV from market or pre-let rent, treat the breadth of occupier demand as a risk cushion, and look for a margin robust to a modest letting void.
Indicative industrial finance rates and leverage
We arrange senior development finance for industrial schemes to 65 to 70 percent of cost and 60 to 65 percent of GDV, priced competitively given the sector's resilience. Well-located speculative multi-unit estates are fundable; a pre-let supports stretch senior or mezzanine and reduces the equity required.
Frequently asked questions
Is industrial development easy to fund?
Among commercial sectors, it is one of the more dependable. Low vacancy, broad occupier demand and strong institutional appetite for the completed product give lenders confidence in well-located schemes, including speculative units in tight markets.
What is the difference between industrial and logistics funding?
They overlap. Industrial covers light and general industrial and trade-counter units serving a broad local occupier base, while logistics focuses on distribution and last-mile space. Both attract strong appetite; the tests differ mainly on scale and connectivity.
Can I fund a speculative multi-unit estate?
In a low-vacancy market, yes. Broad small-business and trade demand for modern units gives lenders confidence to fund well-located speculative estates, usually at slightly lower leverage than a pre-let scheme.
How much can I borrow against an industrial scheme?
Senior debt typically funds 65 to 70 percent of cost, capped around 60 to 65 percent of value, with stretch senior or mezzanine taking that higher on a pre-let or prime scheme.
Funding a industrial scheme?
Tell us about your development and we will come back with a view on fundability and likely terms.