We are specialists in structuring complex financing solutions for commercial and residential property development.
We can provide construction and development finance that provides innovative and strategic alternatives to conventional development finance. Our consultants are trained to provide you with innovative finance solutions aimed at ensuring you maximize the return on your investment.
Development Finance can be structured in many ways, tailored to the specific needs of the project. Typical development funding structures fall into two main categories; hard cost based facilities and the GRV based facilities
We can offer:
1) Construction
Finance based on a percentage of cost/maximum 85%.
2) Construction Finance based on a percentage of Gross Realisation Ex
GST/maximum 70%.
3) Mezzanine Finance (2nd Mortgage)/maximum 80%.
4) 70% of land, 100% of Construction cost.
5) Equity Finance-Capital injection to make projects financeable (usual
cost 35%)
6) 50/50 joint venture ?J.V partner supplies 100% finance and after all
costs, 50/50.
7) Take Out Finance ?Substitute for presales or additional comfort for
Construction Funder, if the applicants presales are minimal
8) PECS-Where a third party purchases a percentage of the projects,
units, offices, shops at a discount, usually 15-20% so that the Funder
is comfortable with pre-sales. Project must have a sufficient
profitability to show 15% net after discount
Hard Cost Facilities
Hard Cost based facilities are typically offered by Banks and other major institutions. The loan amount is restricted to a maximum percentage of the actual hard costs of the project. Typically the maximum percentage is approximately
85% of the hard costs of the project.
Hard Cost Development facilities can fund up to 85% of the Total Development Costs
Loans up to $500M
GRV based facilities
Gross Realisable Value based facilities are based on the sale value of the project, on a cost to complete basis. The GRV based facility focuses on the profit potential of the project, and are typically sourced through private funding channels. By utilizing GRV based products means that potentially 100% of project costs can be funded.
GRV based facilities can fund up to 70% of the end value of the project
(ex GST)
Loans up to $250M (lower rates for > 65% GRV)
Security We Accept:
For a quote you will require as a minimum council approved plans, fixed price quote from a builder and Feasibility or Marketing Plan with full costing. .
Fill out our contact form now to find out how we can help you with Property Development Loans
