Cardiff’s Harlech Court Tower Receives £67.2m Finance 2026

Key Points

• £67.2 million funding package for Harlech Court build-to-rent scheme in Cardiff city center has been secured.
• Close Brothers Property Finance has arranged this facility for Cardiff-based developer Draycott Group.
• It is envisaged that the building will be 30 stories tall and will accommodate 340 rental apartments.
• This project has a gross development value of over £100 million, according to both companies.
• The development is expected to become one of the tallest buildings in Wales.
• The construction has started, with the tower crane installed on the site located in Cardiff city center.
• Intelle Construction is a general contractor for this project, while Stephenson RC Frames will deliver the building frame.
• The apartments are expected to comprise 279 one-bedroom homes and 61 two-bedroom homes.
• Planning permission for this scheme was obtained from Cardiff Council in October 2025.
• Cycle storage facilities and waste management issues were among the planning issues raised during discussions.
• Harlech Court project is expected to include amenities for the residents, which will include a gym, co-working space, meeting room, lounge and sky lounge.
• Draycott Group has called Harlech Court the largest project it delivered.

Cardiff (Wales Times) September 1, 2026 — uk/local/cardiff/">Cardiff apartment scheme funding of £67.2m has been secured to support the completion of a 30-storey build-to-rent tower in the city centre, with the developer planning 340 rental apartments at Harlech Court.

Business Live reported that the developer behind the city-centre residential project had secured the £67.2m funding package. Separate reports by Nation.Cymru staff, Business News Wales and The Intermediary identify Close Brothers Property Finance as the lender and Draycott Group as the Cardiff-based developer receiving the facility.

The funding relates to Harlech Court, a high-rise development under construction on the site of a former purpose-built office block. The 30-storey building is planned to provide one-bedroom and two-bedroom apartments for rent rather than homes for individual sale, under the build-to-rent model. The project has a stated gross development value of more than £100m.

The finance deal gives Draycott Group backing for what it has described as its largest development to date. The scheme is also expected to add another high-rise building to Cardiff’s changing skyline, with reports stating that it is set to be among Wales’ tallest buildings.

Who is funding the Cardiff apartment scheme?

Close Brothers Property Finance has completed the £67.2m facility for Draycott Group, according to Business News Wales and The Intermediary. The transaction is the first loan agreed between Close Brothers Property Finance and Draycott Group.

The financing was led by Close Brothers’ Structured Finance team. Business News Wales reported that the team was established in 2025 to operate alongside the lender’s existing SME housebuilder business and to focus on larger and more complex living-sector transactions across the UK.

That scope includes build-to-rent, co-living and purpose-built student accommodation projects. Business News Wales reported that the Structured Finance team is led by managing director Chiara Caldwell, while Shon Pallickaleth was appointed business development director in February 2026 with responsibility for growth across Wales, the South West and the Midlands.

Phil Hooper, chief executive of Close Brothers Property Finance, said the lender regarded Harlech Court as fitting the purpose of the specialist team.

As reported by Nation.Cymru staff, Phil Hooper 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.”

As reported by Business News Wales, Mr 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.”

The facility therefore represents both a funding arrangement for the individual scheme and an investment by Close Brothers Property Finance in a larger-scale residential rental project in Wales.

What will the 30-storey development include?

Harlech Court is planned to contain 340 apartments across its 30 storeys. Nation.Cymru reported that the approved scheme includes 279 one-bedroom flats designed for up to two people and 61 two-bedroom flats designed for up to four occupants.

The development will include facilities intended for residents, rather than solely private flats. Reports from Nation.Cymru and Business News Wales state that the amenities are expected to include:

• A residents’ co-working area
• A meeting room
• A gym
• A residents’ lounge
• A sky lounge
• Communal gardens
• Roof terraces at the 20th and 21st floors

Nation.Cymru reported that the plans approved by Cardiff Council included 536 square metres of internal communal space and 245 square metres of external amenity space. The external provision includes the communal gardens and the roof terraces.

The site is in Cardiff city centre and previously accommodated Harlech Court offices. It was also formerly home to Porter’s, a popular music venue, according to Nation.Cymru.

Construction is already under way. The main tower crane has been installed, Intelle Construction is serving as the main contractor, and Stephenson RC Frames is the frame contractor, Construction Enquirer reported. IN Site also reported that piling had been completed and reinforced-concrete frame work was progressing.

How did Cardiff Council approve Harlech Court?

Cardiff Council’s planning committee approved the Harlech Court development in October 2025. Nation.Cymru reported that the decision followed differing views among committee members about elements of the design and operational arrangements.

Concerns raised during the planning process included the proposed arrangements for waste and recycling, as well as cycle storage. The approved plans included 352 bicycle spaces, Nation.Cymru reported.

Council planning officers recommended approval, arguing that the project would regenerate the site and provide additional housing in the city centre. The committee subsequently approved the scheme.

Draycott Group’s plans for redeveloping the site were first announced in 2021. At that point, early proposals contemplated a building of up to 35 storeys. The project that secured approval is lower at 30 storeys, but it remains a substantial city-centre residential tower.

The current funding announcement concerns the approved 30-storey proposal rather than the earlier concept. It also comes after physical construction activity began, with work continuing on the structure of the building.

What has Draycott Group said about the project?

Draycott Group has operated in Cardiff’s residential and commercial property sectors for around 40 years, according to Nation.Cymru and Business News Wales. The company has experience in build-to-rent and purpose-built student accommodation schemes.

Sajid Ghaffar, chief executive of Draycott Group, said Harlech Court was the company’s biggest completed commitment to date.

As reported by Nation.Cymru staff, Mr Ghaffar said: “This is the largest scheme that we have delivered to date and it will transform the Cardiff city skyline.”

As reported by Business News Wales, he said:

“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.”

Mr Ghaffar also commented on the lender’s involvement. As reported by The Intermediary, he said:

“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.”

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

Those comments set out the developer’s position that the funding structure is intended to allow the project to continue through construction. The reports do not state a completion date for Harlech Court.

What is the background to Cardiff’s build-to-rent development?

Build-to-rent refers to housing constructed specifically for the rental market, with homes retained and managed as rental properties rather than sold separately to owner-occupiers. Harlech Court forms part of this segment of the housing market.

Close Brothers Property Finance said the Welsh build-to-rent sector had expanded over the previous year. Figures supplied by the lender and reported by Nation.Cymru and Business News Wales show that the number of build-to-rent homes completed, under construction or in planning in Wales increased from 3,296 in the first quarter of 2025 to 3,824 in the first quarter of 2026. That represents a 16% increase.

The same figures stated that the number of build-to-rent homes at planning stage grew by two-thirds over that period. Harlech Court is therefore entering a market in which more rental developments are being proposed, planned and delivered across Wales.

The tower is separate from another 30-storey build-to-rent project, The Rise at Guildford Crescent in Cardiff. MarketScreener reported in July 2026 that The Rise had been completed with 272 apartments, ground-floor retail space and resident amenities. The two schemes illustrate the presence of more than one high-rise rental development in central Cardiff, although they are different projects with different developers and financing arrangements.

How could the funding affect Cardiff residents and renters?

The funding agreement allows construction of Harlech Court to proceed with financial support for the 340-home scheme. For prospective renters, the eventual effect is expected to be the addition of one-bedroom and two-bedroom rental properties in Cardiff city centre, alongside shared facilities including workspace, a gym and lounge areas.

For nearby residents and city-centre businesses, ongoing construction activity is likely to remain the immediate practical effect while the project is built. The main tower crane is already in place and structural work is progressing, according to reports from Nation.Cymru, Construction Enquirer and IN Site.

For Cardiff’s development sector, the £67.2m facility provides an example of institutional development finance being deployed for a major Welsh build-to-rent project. Close Brothers has linked the decision to reported growth in the wider Welsh rental-development pipeline.

The long-term impact on rental availability, rents and local demand cannot be determined from the funding announcement alone. Those outcomes will depend on the scheme’s completion, the terms under which apartments are offered, occupancy levels and wider conditions in Cardiff’s housing market.