_Meet Knight Frank’s Debt Advisory team

What is Knight Frank Debt Advisory?

Lisa: Essentially we provide clients across all sub-sectors of real estate with best-in-class advice regarding how to finance development or investment transactions in the UK and Europe. 

In the current debt market there are so many lenders to choose from and so many options, it can be hard for clients to navigate and choose the best solution for their investment decisions.

We provide advice and support throughout the entire financing process, negotiating the most competitive terms and executing transactions at speed whilst also maintaining a focus on forging long term client and lender relationships.  

How did Debt Advisory come to be established?

Lisa: Until Knight Frank Debt Advisory was formed, we were missing out on offering a key area of real estate finance that would benefit our clients. 

All members of the Debt Advisory team joined Knight Frank from a lending / banking background, keen to build a new business within a long-standing and client focussed partnership. 

Jane: We have supported overseas UHNWIs looking to invest in the UK and Europe by acquiring income producing assets. We have arranged debt facilities which enable these clients to achieve cash-on-cash hurdles by maximising leverage and pricing. 

Guy: We have also executed a number of residential development transactions across London and the UK thereby supporting the drive to build new homes. We have supported clients who have developed large blocks of apartments and who wish to refinance the expensive development debt into an interim finance package (‘exit finance’) which gives them time and breathing space to sell units. 

How could a client benefit from getting in touch?

Guy: The debt market is difficult to navigate, particularly given the wide range of options which exist today. In addition, working with debt providers can be challenging. Dealing with jargon and credit lending processes is not always straightforward. Our clients benefit from our collective decades of lending experience, making the debt finance process easier and smoother from start to finish. 

Chris: Recently we were able to support a client in Germany who couldn’t obtain suitable terms to support the acquisition of an operational retail asset. Knight Frank Debt Advisory sourced and arranged a competitive debt package which enabled the acquisition to progress through to execution. 

From left: Chris Kelly, Lisa Attenborough, Guy Norman, Jane Stockdale  

Can you share a recent case study which showcases Debt Advisory’s expertise?

Guy: We recently obtained £20m of financing from Daiwa Capital Markets for the development of a new 332-bed purpose built student accommodation asset in Nottingham City Centre.

Our client approached us to source and arrange stretched senior construction finance at the most competitive rate with an experienced lender. 

We were able to obtain highly competitive pricing for a stretched senior loan (i.e. significantly higher leverage than you could obtain from a high street senior debt lender) within a period of five months. We worked closely with the Knight Frank Student Accommodation team to ensure that our debt discussions were fully informed as to the assumptions and specifics of the student accommodation sector. 

Are there any new or unusual types of finance that Debt Advisory is seeing in the market?

Lisa: We are currently working on a deal which refinances existing construction finance for newly completed developments. Specifically, it can finance remaining units which are pepper-potted throughout the scheme. 

This type of finance is helping developers take cash out of schemes which haven’t yet obtained the sales numbers required to pay down expensive construction finance and replace it with more competitively priced ‘exit finance’. We have obtained leverage of up to 75% loan to gross development value; whereas most development finance facilities cap out at 55% - 60% loan to GDV.

This has the added benefit to developers of giving them more time to sell units. 

Guy: Interestingly we have also seen a resurgence of appetite to debt fund income-producing prime residential assts. Maximum leverage was previously around 50% due to the low yield, but we are now able to source much higher leverage (up to 60% - 65% LTV).

If there was just one thing everyone should know about Debt Advisory, what would you like it to be?

Lisa: That we provide swift, informed and sector-specific advice coupled with best-in-class execution ability. 

To find out more about the Debt Advisory team visit: