Property Development Loans

In the wake of the 2018 Royal Commission into Banking, many of the major players are tightening their lending criteria and obtaining Property Development Funding from Banks has become more difficult. As a result, second tier banks, private funders and joint venture funders are increasingly becoming a popular alternative for some developers.

Development Loans main advantage is generally they do not require pre-sales or financials and are typically far more flexible in their lending criteria.

Development Finance for:

Unit or townhouse developments
Multi story apartment developments
Land Subdivision
Mixed use developments
Commercial premises
Partially completed projects
Retained stock
Land banking
Mezzanine Finance

General facilities are up to Maximum LVR of 65 > 70% on project end value (minus GST). When required, senior debt facilities can be supplemented with mezzanine finance, preferred equity and equity funding.

Mezzanine Finance

With senior debt secured, we can assist property developers to bridge the financial gap with mezzanine finance, allowing them to reserve more capital for other projects.

Equity Finance

Shared risk, shared profits. Some of our Private Lenders have expertise in co-investing with select property developers and land owners to maximise the highest and best use and value of the asset.

Development Loans

Private lenders have far less stringent lending criteria than banks. This makes the property development finance application and approval process with a private lender much quicker.

In private development funding the borrower prepares information for private lenders including a feasibility analysis showing land purchase costs, constructions costs, gross realisation value and the expected development margin before submitting to a funder for consideration.

Initial Documentation Required:

Feasibility study for the project.
Copy of the Development Approval and Building Approval
Confirmation of Pre-Sales contracts if available
Copy of fixed Price Building Contract or Confirmation of construction / development costs
Valuation Report and Quantity Surveyor Report (if available)
Copy of the contract of sale (if acquisition).

What Are The Advantages of Private Lender Property Development Loans?

No (or minimal) pre-sale requirements.
Minimal documentation requirements.
No credit checks.
Minimal equity/deposit requirements.
No property development project experience required.
Terms and repayment schedules or capitalised interest being tailored to project needs.
Fast-tracked approvals and settlements.