Close Brothers agrees £67.2m facility to support landmark Cardiff Build to Rent development

Close Brothers Property Finance has completed a £67.2m facility with Draycott Group to support the delivery of Harlech Court, a 340-unit Build to Rent (BTR) development in Cardiff city centre.

With a gross development value exceeding £100m, the scheme will create one of the tallest buildings in Wales and marks a significant milestone for both organisations. It also demonstrates Close Brothers Property Finance's growing commitment to larger and more complex Living sector transactions through its specialist Structured Finance team.

Supporting the growth of Build to Rent in Wales

Harlech Court will transform a former office site into a modern residential development comprising one and two-bedroom apartments, alongside a range of resident-focused amenities. These include a co-working space, meeting rooms, gym, residents' lounge and an elevated sky lounge overlooking the city.

The scheme arrives at a time of continued momentum for the Welsh Build to Rent market. According to Savills' Build-to-Rent Report Q1 2026, prepared for UK Real Estate, the number of BTR homes completed, under construction or in planning across Wales increased by 16% between Q1 2025 and Q1 2026, with the number of homes in planning growing by almost two-thirds during the period.

The development is expected to help meet demand for high-quality rental accommodation in Cardiff, while contributing to the ongoing regeneration of the city centre.

A new partnership with Draycott Group

The transaction represents Close Brothers Property Finance's first deal with Draycott Group, a Cardiff-based developer with more than 40 years' experience delivering residential and commercial schemes across the region, including Build to Rent and Purpose Built Student Accommodation (PBSA).

The facility was structured and delivered by Close Brothers Property Finance's Structured Finance team, which was established in 2025 to provide tailored funding solutions for larger Living sector projects, including Build to Rent, co-living and PBSA developments throughout the UK.

Led by Managing Director Chiara Caldwell, the team complements the bank's long-established support for SME housebuilders and developers, which spans more than 50 years. Earlier this year, Business Development Director Shon Pallickaleth joined the team to drive growth across Wales, the Midlands and the South West.

Backing ambitious developments

Phil Hooper, CEO 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."

Sajid Ghaffar, CEO 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."

Expanding support for the Living sector

The Harlech Court transaction reflects Close Brothers Property Finance's continued investment in the Living sector and its ability to support developers delivering larger-scale residential schemes across the UK.

By combining specialist expertise with a relationship-led approach, the business is helping experienced developers bring forward projects that address housing demand, enhance local communities and contribute to the long-term growth of regional cities.

Source: Savills Build-to-Rent Report Q1 2026, prepared for UK Real Estate (formerly the British Property Federation).