East Anglia Residential Development

J3 Advisory was appointed to support a residential development in East Anglia, providing integrated advice across both development finance and insurance. Rather than considering funding and insurance independently, we reviewed the wider commercial objectives of the scheme to identify opportunities to improve borrowing capacity, reduce insurance costs and strengthen the project’s overall financial position.

Our integrated approach resulted in improved funding terms, significant insurance savings and greater confidence throughout the delivery of the development.

Location

East Anglia

The Challenge

Funding and insurance decisions are often made separately, despite each having a direct impact on project viability, cash flow and commercial returns. An insurance strategy that doesn’t align with lender requirements can increase costs or delay funding, while sub-optimal finance terms can unnecessarily restrict project performance.

For this development, the client required both competitive funding and an insurance solution that reflected the technical requirements of the scheme, including its conversion elements. Reviewing both disciplines together created opportunities that may not have been identified if each had been considered in isolation.

Our Role & Outcome

J3 Advisory worked with the client to review both the financing structure and insurance strategy as part of a single advisory process.

On the finance side, we negotiated improved lending terms that increased leverage from 60% to 65% Loan-to-Gross Development Value (LTGDV) while maintaining the lower pricing originally offered. This provided an additional £160,000 on day one, improving project cash flow and increasing the client’s expected return on equity.

At the same time, we reviewed the proposed Structural Warranty after the client received uncompetitive terms from an existing provider. By comparing the wider market, we secured a more competitive solution that reduced warranty costs by approximately £30,000, while providing a technical approach better suited to the conversion elements of the development.

Beyond the Structural Warranty, J3 also advised on the project’s wider insurance programme, helping ensure the development was appropriately protected throughout construction.

The combined finance and insurance strategy improved funding efficiency, reduced project costs and demonstrated the value of considering insurance and finance as part of a single commercial decision rather than in isolation.