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Global Capital Commercial is one of
Australia's leading facilitators of construction loans and development
finance Australia Wide for residential property developments and commercial
property development loans over $1M.
Global Capital Commercial has extensive experience in structuring construction
loans for property developers and can facilitate development finance for land
subdivisions, residential property developments, commercial property
developments, office, industrial, retail and hospitality orientated property development
loans throughout Australia.
Global Capital Commercial’s Property Development Finance can be structured in
many ways, tailored to the specific needs of the project finance required.
Typical property development loan structures fall into two main
categories; total development cost based construction loans and the
Gross Realisable Value (GRV) based construction loans.
- Total Development Cost (TDC) construction loans are based as a percentage on all construction costs associated
with the property development such as land value, construction costs, professional
fees, marketing costs, stamp duty, interest and so on, Global Capital Commercial
offers construction loan facilities of up to 80% of Total Development Costs (TDC)
- Gross Realisation Value (GRV) construction loans are based on a percentage of the projects end value upon
completion. Global Capital Commercial offer project finance facilities of up to 70% of
Gross Realisable Value (GRV). This LVR is based on 70% of land value plus 100% of costs to complete which is also limited to 70% of GRV.
Global Capital Commercial also offers offers the following additional development loans and construction finance
facilities to property developers:
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Mezzanine facilities bridges the gap between senior debt providers building loan and the property
developers equity. Mezzanine finance is
secured by a second mortgage for a fixed return on investment
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Equity participation where the property developer has insufficient equity to inject into the
property development they will require an equity contribution from an
equity partner to successfully finance the project for an agreed
percentage of the project profits
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Land Bank Finance for the finance of land where the construction of the proposed property
development will be at a future date
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Take-out Facilities allow for the refinance of residual stock to repay construction loans, release equity or to
allow the property developer space for an extended selling period
Value Add Services
Often property developers need assistance
in structuring their property development proposal to successfully secure
construction finance. Examples are sourcing appropriate project marketing
specialists, project managers, builders, valuers and Quantity Surveyors.
Global Capital Corporation can also
arrange the following project finance value add services to property developers:
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Presale underwriting products such as Put options and Standby presales which enables the construction finance to
commence immediately instead of waiting for pre-sales requirements from
the construction loan lender to be achieved
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Credit Enhancement Bonds (CEB) which insures the lender in terms of pre-sales. For example if a
lender wants 100% presales the CEB will insure 20% meaning that the
developer only has to achieve 80% of pre-sales
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Joint Ventures with experienced property developers
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Builder Selection is one of the biggest challenges for a property developer is finding the right builder to build a project, in the selected location, to start when required, at the best possible price, through GCC’s business partners we can help make the choice of builder simple
GCC is closely aligned with all the project finance market participants,
including those in agency, valuation and construction plus our long term
relationships with lending institutions and property developers gives us a
unique market overview and adds significant value to our property developer clients.
If you require construction
finance for either your residential property development or commercial property
development and would like to speak to one of our project finance specialists
for further information on building Loans contact Global Capital Commercial
on 02 9222 9100 or if you would prefer one of our consultants to contact
you please complete and return our one page enquiry form.
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