Forward funding / Forward purchase
The capital that funds delivery and de-risks the exit.
ForwardFund is the UK dedicated resource for forward funding and forward purchase transactions, connecting developers of institutional-grade assets with the funds, REITs and annuity investors that provide them.
23
Sectors covered
£10m to £250m+
Transaction range
Funding · Purchase · Strips
Structures advised
Institutional only
Register
The proposition
One structure, every income-producing sector.
Forward funding transfers land at golden brick and funds construction in monthly drawdowns, typically priced at a discount to the forward purchase equivalent to reflect the investor’s development exposure. It is the mechanism through which the institutional market builds the assets it wants to own.
We advise developers and landowners with consented or near-consented schemes on how to reach a funded exit, and we do it across the whole topic rather than a single vertical. From PBSA and Build to Rent to data centres, logistics and long-income primary care, the structure adapts and the covenant analysis changes. That is the work.
Read the anchor guide to forward funding, or compare it with forward purchase.
Structure · four stages
How a forward funding works
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Land at golden brick
The investor acquires the site once foundations reach ground level, taking title and the input VAT benefit while construction is still in its early stages.
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Monthly drawdowns
Construction is funded in staged monthly drawdowns against certified valuations, so the developer carries no senior debt and no rolled-up interest.
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Developer return
A priority developer return, usually a fixed percentage of cost or a profit share, is paid on completion and let, ranking behind the investor’s committed yield.
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Completion and balancing
On practical completion and lease-up the final valuation is struck, the price is balanced to the agreed yield, and the asset is held as a stabilised investment.
Sector coverage
Twenty-three sectors where forward structures are used.
Each pillar carries sector-specific pricing, named market participants and the structure variants that actually apply. No boilerplate with a noun swapped in.
Living
Industrial and logistics
Operational and alternatives
Insights
Latest market notes
PBSA
PBSA forward funding: where pricing sits in 2026
A mid-2026 read on student accommodation forward funding, covering yield ranges, the direct-let versus nomination split, and the supply and demand dynamics shaping investor appetite.
15 Jun 2026
Logistics
The pre-let premium in logistics forward funding
A mid-2026 read on how a pre-let repriced against speculative delivery in big box logistics forward funding, and why covenant and lease indexation are doing more of the work than location alone.
20 May 2026
The adviser
Matt Lenzie
Matt Lenzie advises developers and landowners on forward funding and forward purchase structures across the UK institutional sectors. He spent his early career at Bank of Scotland Corporate and Lloyds Banking Group, and now leads the Construction Capital brokerage.
25 years in property and corporate finance. Former Associate Director at Bank of Scotland Corporate and Lloyds Banking Group.
Track record and background →- Experience
- 25 yrs
- Background
- BoS & Lloyds
- Focus
- Institutional
- Portfolio
- Construction Capital