Factory Estates Secures £3.46m Development Finance Backing

Factory Estates, a well-regarded property developer with successful projects across Salford and Manchester, has secured a £3.46 million development finance facility from United Trust Bank (UTB). This funding, representing 70% of the Loan-to-Gross Development Value (LTGDV), was facilitated under the Housing Accelerator Fund (HAF), a joint initiative between Homes England and UTB launched to increase financial support for small and medium-sized UK property developers.

The proposal was introduced by Gareth Taylor of Excellion Capital and approved by Philip Kirkwood at UTB. Despite being a new client, Factory Estates impressed UTB with its strong track record of development. This approval highlights UTB’s ongoing commitment to empowering emerging housebuilders through strategic property development finance solutions.

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Off-Plan Sales and Fast-Tracked Funding Success

By leveraging enhanced gearing, the developers accessed competitively priced development finance options with swift turnaround times. Funds were released quickly, with the first drawdown completed just 23 working days after credit approval, highlighting the efficiency of the funding structure.

At The Gateway, Factory Estates has already achieved three pre-construction (off-plan) sales, with further sales expected as construction advances. This momentum reflects growing investor confidence and reinforces the strong outlook for Factory Estates’ ongoing property development projects.

 The quotes

Other lenders might have found these issues problematic. However, thanks to UTB and Gareth at Excellion, banking has been the smoothest part of this project. This is a rare experience for us. The Housing Accelerator Fund has truly delivered as promised!”

Gareth Taylor of Excellion Capital commented, “This project attracted Factory Estates because plans were already in place, allowing the team to move quickly. I introduced a lender that could meet their need for speed. From my perspective, UTB was delivered on all counts.

They agreed to a higher-geared, 70% LTGDV facility. The whole team at UTB worked swiftly to provide a quick drawdown. When the time came, my client had the money available when needed.”

Philip Kirkwood, director of property development at United Trust Bank, commented: “I’m delighted we supported this Factory Estates development with a higher-geared facility through our innovative Housing Accelerator Fund. Factory Estates is a successful regional developer that builds high-quality homes in areas of need. Working with Chris Bowman has been a pleasure, and we were able to agree on and finalise this facility in a few short weeks.

We collaborated closely with the Factory Estates team and their excellent professionals to ensure funding was quickly implemented. This scheme is a great example of how specialist development lenders like UTB can partner with public agencies like Homes England. Together, we structure and deliver innovative funding solutions that give SME housebuilders the support they need to continue building.

I look forward to supporting many more Factory Estates developments in the future.”