Key Points
- Draycott Group has secured a £67.2 million structured loan facility from Close Brothers Property Finance.
- The Harlech Court scheme has a gross development value of more than £100 million.
- Plans include a 30-storey residential tower with 340 build-to-rent homes, making it one of the tallest structures in Wales.
- The Cardiff city centre site previously housed a 1970s office building and an adjoining 83-bed hotel, both of which have been demolished after full planning consent was granted.
- The development will include 279 one-bedroom and 61 two-bedroom apartments, along with indoor and outdoor communal spaces.
Cardiff (Cardiff Daily) August 24, 2026 — Draycott Group has secured a £67.2m structured finance facility to deliver Harlech Court, a major 340-home build-to-rent (BTR) scheme in Cardiff city centre. As reported by The Intermediary, the debt financing was arranged through the Structured Finance team at Close Brothers Property Finance. The loan will support the construction of the 30-storey residential tower, which carries a overall gross development value (GDV) of more than £100m and is set to alter the capital city’s skyline as one of the tallest buildings in Wales. The site, formerly housing a 1970s office block and an adjoining 83-bed hotel, has already seen structural demolition, and on-site build operations are now underway following full planning permission from Cardiff Council.
How has the financial deal been structured and received by key stakeholders?
The transaction marks the inaugural lending arrangement between Close Brothers Property Finance and Cardiff-based Draycott Group, a real estate company with four decades of development history across residential, commercial, BTR, and Purpose-Built Student Accommodation (PBSA) sectors.
As reported by The Intermediary, Sajid Ghaffar, Chief Executive Officer of Draycott Group, emphasised the significance of the project to the firm’s portfolio, stating:
“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”.
Ghaffar further noted that
“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”.
Highlighting the strategic reasoning behind funding the high-rise scheme, Phil Hooper, Chief Executive Officer of Close Brothers Property Finance, commented:
“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”.
Hooper added:
“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”.
What are the key architectural details and planning history of Harlech Court?
According to architectural documentation prepared by CWA Architects and detailed by Business Live reporter Ted Peskett, the project at Harlech Court initially began in 2021 as a 35-storey proposal before being scaled back to 30 storeys to ensure fiscal deliverability while staying within the local council’s tall building criteria. Following initial submission in late 2024, Cardiff Council granted full planning consent, permitting the demolition of the former office structure—which previously contained the popular local venue Porter’s—to facilitate ground-level construction.
As outlined in planning documents cited by WalesOnline, the residential unit distribution is weighted toward single- and two-person occupancy, featuring 279 one-bedroom units and 61 two-bedroom units, consciously avoiding studio formats due to the growth of the local co-living sector. In addition to residential accommodation, the tower will incorporate 536 square metres of internal communal space—comprising co-working areas, private meeting rooms, a gym, a ground-level lounge, and a sky lounge. Complementing the interior, 245 square metres of external amenity space will feature communal landscaped gardens alongside elevated roof terraces located on the 20th and 21st floors. Ground-floor commercial spaces are designed to accommodate a mix of retail, cafe, and leisure offerings.
During the council’s planning committee process, members expressed varied opinions regarding design execution and operational logistics. As reported by WalesOnline, concerns were raised regarding cycle storage and waste management strategies, with operational officials pointing out the need for private waste arrangements to adhere to local guidelines on bin capacity and material segregation. However, council planning officer Kenneth Williams highlighted the overarching necessity to balance design guidance with regeneration needs, pointing out that the development directly addresses urban housing targets on a highly sustainable brownfield site.
Background of Build-to-Rent developments in Cardiff
The securing of the £67.2m facility for Harlech Court takes place against a backdrop of expansion within the Welsh institutional rental sector. Data published in industry reports by The Intermediary indicates that the Build-to-Rent market across Wales grew by 16 per cent between Q1 2025 and Q1 2026, reaching a total of 3,824 homes either completed, under construction, or in planning. Over the same timeframe, the total number of BTR units within the planning pipeline expanded by two-thirds.
Historically, Cardiff’s city centre skyline has undergone gradual densification, driven by sustained demand for purpose-built student accommodation and high-density residential developments. However, long-term delivery of tall buildings in the Welsh capital has occasionally faced headwinds due to economic shifts, inflation in construction materials, and broader market conditions. Several ambitious high-rise schemes across the city were altered or delayed over the preceding decade. The start of construction and full funding securing for Harlech Court signifies a resurgence in institutional lender confidence regarding primary Welsh urban development.
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Prediction for local residents, renters, and regional economy
The successful financial close and ongoing delivery of Harlech Court is set to impact multiple local stakeholders across Cardiff:
- Prospective Renters: The addition of 340 purpose-built rental units will expand supply within a tight Cardiff city centre housing market. The inclusion of dedicated management, extensive internal working hubs, and communal outdoor terraces provides professional tenants with purpose-designed facilities, relieving pressure on surrounding traditional private-rented housing stock.
- Local Economy and Businesses: The multi-year construction phase is expected to generate direct employment in the regional construction sector and supply chains. Once populated, the high-density residential presence in the city core will drive consistent footfall to nearby retail, hospitality, and public transit networks, aiding urban revival efforts.
- Real Estate Lenders and Institutional Investors: By demonstrating that substantial £100m+ gross development projects can successfully secure structured debt and reach construction phases in Wales, the transaction sets a precedent for regional BTR expansion. This is likely to encourage further institutional capital allocation toward key regional cities outside London and major English hubs.
