£67 million deal backs ‘landmark’ tower scheme

A £67.2 million funding deal is set to support the delivery of a 30-storey residential tower that will become one of the tallest buildings in Wales.

Close Brothers Property Finance has agreed the facility with Cardiff-based Draycott Group for Harlech Court, a 340-home Build to Rent development in Cardiff city centre.

The scheme, which has a gross development value of more than £100 million, will replace a former purpose-built office block with one and two-bedroom apartments.

Residents will have access to facilities including co-working and meeting spaces, a gym, lounge and sky lounge.

The agreement marks Close Brothers’ first loan with Draycott, which has a 40-year track record across residential and commercial development, including Build to Rent and purpose-built student accommodation.

It was led by Close Brothers’ Structured Finance team, established in 2025 to finance larger and more complex living sector developments across the UK.

Phil Hooper, chief executive of Close Brothers Property Finance, said: “Harlech Court is exactly the type of scheme our Structured Finance team was set up to back: a landmark development in an excellent central location in a capital city that continues to see strong demand for quality rental stock. 

“We’re proud to be partnering with Draycott and to be growing our presence in the Living sector with the same relationship-led approach that's made us a trusted partner to housebuilders and developers for over 50 years.” 

The deal comes amid growing activity in the Welsh Build to Rent market.

The number of homes completed, under construction or in planning increased 16 per cent from 3296 in the first quarter of 2025 to 3824 a year later, with the number awaiting development through the planning system rising by two-thirds.

Sajid Ghaffar, chief executive of Draycott Group, added: “This is the largest scheme that we have delivered to date and it will transform the Cardiff city skyline. 

“Cardiff is a market we know extremely well, having been active in residential and commercial property development for over 40 years, and Harlech Court builds on that long-standing track record. 

“The team at Close Brothers Property Finance have understood our ambition from day one and worked closely with us to structure a facility which has enabled the scheme to move forward at pace. 

“Working with a lending partner with similar longevity and a clear commitment to the region has been enormously valuable.” 

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