Security Release Coverage (GDV) is an important ratio in UK property development finance that connects the Gross Development Value (GDV) of a project with conditions for releasing lender security. It defines the minimum percentage of the sales value developers must achieve before a lender permits the partial release of charged security, typically as units are sold. This ratio safeguards the lender by ensuring the outstanding loan is adequately covered by remaining assets. Developers need to plan sales and cash flow carefully to meet these staged release conditions, which are critical for successful project completion.
This sits beneath Security & Ranking, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Security Value Coverage (SVC), as both are closely related measures used to assess similar aspects of performance or risk. In funding terms, Security Release Coverage (GDV) is most commonly encountered in connection with Strategic Land Loan within the property development capital stack.
View glossary entry