"This is a great example of how thoughtful structuring at origination can drive better outcomes for all parties"
- Michael Clifford - DCI
District & County Investments (DCI) has completed a £2.3m development finance facility supporting the acquisition and conversion of Stansfield Mill, near Sowerby Bridge in West Yorkshire, into 17 high-specification residential apartments.
The deal was structured with a dual-phase approach from the outset, combining development funding with a pre-agreed transition to lower-cost development exit finance upon practical completion. That structure gave the borrower full cost visibility across the entire project lifecycle and removed the refinancing risk that can expose developers at the point of completion.
How the structure worked
Rather than treating development and exit finance as separate transactions, DCI built the transition into the original facility. As development risk reduced through the build phase, funding costs fell in step, a design the lender says reflects the realities of the current lending environment.
"This is a great example of how thoughtful structuring at origination can drive better outcomes for all parties," said Michael Clifford, commercial director at District & County Investments. "The scheme has now been delivered, creating 17 high-specification flats on an existing site and adding real value to the local community."
"From the outset, the funding was designed to transition to a lower cost of capital once the development completed, giving the borrower certainty on both delivery and pricing."
The approach also repositioned DCI's exposure as the project progressed. "From a lender perspective, we move into a position of holding strong, standing security in a completed asset that is ready for sale or refinance, having funded the land purchase and the build costs," Clifford added.
What the deal means for borrowers and lenders
The Stansfield Mill transaction illustrates a broader shift in how some development lenders are approaching deal structuring. By pre-agreeing the exit terms at origination, borrowers avoid the uncertainty of refinancing negotiations mid-project, when leverage is often weakest.
For DCI, completing the build cycle through to a standing residential asset reduces credit risk considerably. The 17 apartments represent a tangible addition to local housing supply, while the lender holds security against a completed, saleable asset.
Clifford said the outcome demonstrated the value of aligning interests across the deal. "Ultimately, everyone wins; the community benefits from new homes, the borrower benefits from reduced costs and certainty, and we benefit from a de-risked, high-quality asset."
What this means for brokers and developers
For brokers working with developer clients, the DCI model points to an approach worth exploring on schemes where refinancing risk at completion is a concern. Pre-agreed exit terms can simplify project finance, particularly on conversions and smaller residential schemes where lender appetite at the exit stage can be harder to predict.
DCI says it continues to offer tailored bridging and development finance facilities, with an emphasis on execution speed, structural simplicity, and deal lifecycle alignment.
