Atelier launches lending framework for modular and offsite developers
Atelier has launched a lending framework to finance residential property developments built with offsite and modular construction techniques, in a bid to address the funding challenges SME developers face with these schemes.
Loans ranging from £5m to £40m, at up to 70% LTGDV, will be made available to SME developers and intermediaries.
The move aims to address the challenges that smaller enterprises face in financing these projects.
The launch comes after the lender completed an industry-wide consultation with the modular and offsite manufacturing community, including real estate professionals and trade bodies such as the National House Building Council (NHBC) and Buildoffsite Property Assurance Scheme (BOPAS).
The business has also created a simple guide for SME developers and intermediaries, providing lending and eligibility criteria where offsite and modular technology is used.
The framework will run alongside the company’s Carbonlite Challenge — the sustainable finance pilot it created to incentivise developers to build greener homes.
Chris Gardner, joint CEO at Atelier commented: “Everyone agrees offsite construction technology has the potential to transform residential property development.
“But it’s time for that potential to be turned into reality, and that’s why we are determined to help developers build more homes this way.
“We’ve collaborated across the construction industry, incorporating the expertise of more than 30 leaders in offsite technology to give developers, intermediaries and contractors a clear and practical guide to the opportunities and challenges that these new ways of building offer.
“Above all, we’re working to be the lender of choice for developers who decide offsite is right for them.”
Chris Hall, innovation services manager at NHBC, added: “The potential benefits of offsite construction are clear — consistent build quality, reduced costs and time on site, and strong sustainability credentials.
