The Intermediary –- June 2026 - Flipbook - Page 68
SPECIALIST FINANCE
Opinion
Beyond funding to
true partnership
T
he development
landscape has changed
in recent years. Where
once the relationship
between developers,
brokers and lenders
consisted solely of transactional
funding agreements, it is now
increasingly characterised by longterm collaboration and support.
Modern lenders are no longer just
sources of capital; they are active
stakeholders invested in the success
of each project. This shi reflects
changes in market complexity,
risk management, and a growing
recognition that developments depend
on more than just financial backing.
Transactional to collaborative
Historically, brokers approached
lenders with a straightforward
proposition: secure financing for their
client who will repay the loan once the
development is complete. The lender’s
role ended largely at the disbursement
of funds.
However, as real estate markets
have become more competitive
and regulatory requirements more
stringent, this simple model has
proven insufficient.
Delays, cost pressures, planning
challenges and changing market
conditions can all impact delivery.
In response, lenders are working
more collaboratively with brokers
throughout the lifecycle of a project,
helping to deliver greater certainty
for clients.
Sourcing the right lender will
strengthen the relationship between
broker and developer, delivering
successful outcomes for both. A good
lender will make swi decisions, be
reliable and transparent, with open
channels of communication to provide
the optimal result for all parties.
Good communication is a
fundamental part of a successful
relationship, a good lender will
provide proactive updates, allow direct
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The Intermediary | April 2026
access to decision makers, and, above
all, act with integrity.
ARIAN MANOUCHEHRI
is head of sales and originations
at MSP Capital
Strategic guidance
Another key shi is the timing of
lender involvement. Rather than
entering at a late stage when funding
is required, many lenders now engage
with developers early in the project/
This early collaboration allows
them to:
Stress-test project viability
Identify potential risks before they
escalate
Align funding structures with
market conditions
This proactive approach helps
developers refine their proposals and
avoid costly mistakes.
Shared goals
Unlike traditional financing models
where interests may diverge, modern
lender and broker relationships are
increasingly aligned. Lenders benefit
directly from project success, whether
through interest payments or repeat
business. Brokers, in turn, benefit
from a client who has been supported
and achieved a positive outcome.
This alignment encourages open
communication and transparency.
Developers are more likely to share
challenges early, knowing they will
receive support rather than resistance.
Brokers and lenders meanwhile,
can respond quickly to changing
circumstances, offering additional
resources where needed.
Changing market
The property sector is also subject to
external pressures such as economic
shis and cost fluctuations. In this
environment, rigid lending structures
can hinder progress. Modern lenders
are increasingly offering flexibility in
terms of funding structure.
This adaptability is particularly
valuable during periods of
uncertainty. A lender that
understands the nuances of
development can make informed
decisions that help keep
projects on track.
Long-term relationships
As the industry has evolved, so too
has the concept of loyalty between
developers, brokers and lenders.
Developers are placing greater value
on consistent business relationships
with brokers who understand their
track record and business model. In
return, lenders and brokers benefit
from repeat business and reduced due
diligence friction.
These long-term relationships
prove to be particularly important
when factoring in the global economic
outlook and development financing
oen becoming more complex
to structure.
Beyond completion
The lender’s role does not necessarily
end when construction is complete.
Many continue to support developers
through the sales or refinancing
phase. For brokers, this continued
support can be particularly valuable,
giving them confidence that their
client has options beyond the
initial facility.
Complex and dynamic
The developer, broker and lender
relationship has evolved into a
dynamic, long-term partnership
built on collaboration. By providing
more than just capital, modern
lenders play a crucial role in helping
navigate challenges.
For brokers, the right lending
partner is no longer just about pricing,
It’s about certainty, communication
and having a lender that helps them
deliver for clients consistently. ●
