​Reform Facility
Reform facilities provide capital for the renovation, repositioning, or enhancement of existing real estate assets across residential and commercial.
Unlike ground up development finance, reform facilities are used to upgrade standing structures, whether through cosmetic refurbishment, structural improvement, or conversion works.
These loans are typically faster to arrange, involve less due diligence, and are suited to asset owners or investors seeking to improve value, enhance yield, or prepare for sale/refinance.
Capital is deployed against the existing value of the asset and the cost of works
The facility is split into two tranches.
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A day one advance secured against the current asset value, enabling acquisition or release of liquidity
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A works facility drawn in line with the refurbishment schedule, often based on QS oversight or cost invoices
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Reform loans are typically structured on a LTC or LTV basis, with terms ranging from 6 to 24 months depending on the project scope and exit plan.
Strategic Benefits
Speed of execution, reduced diligence and fewer third party requirements allow facilities to close in a shorter timeframe, ideal for time sensitive asset strategies
Secured against existing assets, eliminating severe planning or construction risk typically associated with new builds.
Capital efficiency is useful for value add investors and owner operators looking to improve units, increase rents, or prepare for resale or long term financing.
Structures can be tailored around phased refurbishments, portfolio works, or asset repositioning strategies.
Use cases light to mid-scale residential and commercial refurbishments
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Conversion of commercial to residential (subject to permitted development or full planning)
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Renovation of underperforming units for exit or refinance cosmetic upgrades to improve yield or sales value
