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FDC — part of Mercia Asset Management — is raising a £500m UK Real Estate Development Debt fund. First charge security. Industrial and logistics focus. Nine years' track record with zero credit losses.
This is not real estate equity in disguise. When correctly structured, UK development debt is a private credit strategy and an average 2 year investment period.
Returns come from contractual interest, not asset appreciation. Development debt behaves like short-duration private credit — portfolio behaviour driven by structure and execution, not property market direction.
Capital deployed only once planning is in place. First charge security. Developers commit equity ahead of first drawdown. Loans drawn against incurred costs — not as bullets — ensuring alignment throughout.
UK mid-sized industrial and logistics (20,000–100,000 sq ft) is in structural undersupply, underpinned by e-commerce and supply-chain reconfiguration. A sector FDC has backed — and understands — for a decade.
~Average 2 year loan duration and a revolving 5 year investment period. Real asset exposure with predictable capital recycling — attractive for insurers, Local Government Pension Funds, Defined Benefit schemes and family offices alike.
A £500m proposed fund providing first charge secured development debt to experienced UK commercial property developers. Industrial and logistics focus, disciplined credit underwriting, brownfield-first.
£400m+ deployed across residential, commercial and brownfield transactions since 2016. No credit losses. A record that speaks to the quality of origination and rigour of loan monitoring.
Over a decade financing UK industrial and logistics development. We understand what it takes to get a scheme off the ground — and we move fast when high-street banks step back.
FDC is part of Mercia Asset Management PLC and authorised by the FCA. Institutional governance, compliance and reporting infrastructure built for large-scale LP relationships.
£350m+ lent under CIF and RIF. £105m in transactions at board approval or initial terms. Nine-plus years of developer relationships give us privileged access to high-quality, repeat borrowers.
216 acres of brownfield land regenerated. 8,604 jobs created. Majority of schemes delivered to EPC A or BREEAM Excellent. Brownfield-first isn't a marketing line — it's our origination lens.
Short duration, first charge, contractual income. Suitable for insurers, LGPS pools, DB schemes and family offices seeking UK real asset exposure without long-dated equity risk or mark-to-market volatility.
*IRR excl. arrangement fees. Including fees: CIF 8.71% · RIF 8.59% · FDC Debt Fund 12.9%
"No provisions across the loan funds since inception in 2016 — across a demanding range of residential, commercial and brownfield transactions."
From our existing funds, FDC has delivered measurable economic and environmental impact across the UK. The proposed new fund continues and scales this commitment.
Without Frontier Development Capital, we couldn't get any of these schemes off the ground. High street banks are not there for speculative development. FDC fill a huge gap — and the jobs created across those eight buildings in the West Midlands is a testament to what they've done for us.
Henry Bellfield · Barberry · Industrial & Logistics Developer · West Midlands
Highly experienced real estate debt specialists with deep sector networks, long-standing developer relationships, and over 90 combined years of experience.
We're here all week. Book a time directly in the diary below — or drop us an email and we'll come to you.
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Frontier Development Capital Limited – registered in England, company number 09967393. Frontier Development Capital Limited is authorised and regulated by the Financial Conduct Authority and is entered in the register under registration number 829697.
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