An article by Jordan Athaide
Novellus
Novellus operates in the UK and Ireland, offering alternative funding solutions to that of the mainstream banks, secured primarily by real estate. Bridging finance has become an essential tool for property investors, developers and entrepreneurs who need quick access to capital.
Role of Bridging Finance in Refurbishments
Bridging finance is a useful tool specifically designed to fill short-term funding gaps, enabling access to capital for acquisitions, refurbishments and other value-add projects. The timing gap in this context is typically between the purchase of a property and/or the refurbishment/development period for a purchased property, to the point at which the asset has been stabilised and is suitable for longer term mainstream finance.
Case Study: Apartment Block Refurbishment in Cork
Earlier this year, Novellus completed a loan with an experienced developer for their latest project in Cork.
The borrower had already acquired the site, secured the necessary planning permissions, and begun the enabling works. The primary exit strategy was from the sale of the completed units, with sales from another residential development project within the borrower’s portfolio serving as a backup option.
In appraising the deal, the borrower’s experience across several exited developments along with their strong equity position in their ongoing projects were key strengths. Furthermore, the site’s value, given its prime location, and the projected gross development value of the completed scheme were all important factors in Novellus’ decision to support this project.
During the first 4 months of the contracted 18-month term, the borrower made good progress on the development. As there was a slight timing mismatch in the planned sales of other completed units (the proceeds of which were intended to fund ongoing works at the subject site), Novellus engaged with its appointed quantity surveyor (QS) to verify funds spent to date. Once the report was appraised, the decision was made to advance additional funds.
To read more on Novellus’ development exit offering, see our recently published blog here.
Why Novellus Stands Apart
Novellus provides both bridging and longer-term finance, designed to meet immediate funding requirements while supporting the full lifecycle of a project.
We appoint professional advisors, such as a QS, to deliver detailed reports covering build costs, compliance, feasibility and key risks. This ensures clarity for our borrowers and confidence in our lending decisions.
We are entirely privately funded, proactive and fully aligned with our clients’ goals. Our funding structures are tailored to each project, including staged drawdowns linked to predefined milestones. We offer flexibility to bridge timing gaps and subsequently term out the facility once the asset is stabilised, with an amortisation profile suitable for refinancing. Pricing can be adjusted to reflect the credit risk at each stage, from an initial development bridge facility through to a longer-term structure.
Prompt Response
Bridging finance is a strategic tool for property investors looking to move fast and add value. Novellus operate with speed, flexibility, and we apply our expertise in delivering funding solutions suited to our clients’ needs.
For any light or heavy refurbishments or ground-up development projects, please reach out to us with your funding requirements via the enquiry form below or at [email protected]. We will review your enquiry promptly.
