Property Development Finance Australia
Structured capital solutions for residential, commercial and mixed-use property developments.
Accrutus Capital advises developers on structuring and securing development funding from private lenders, private credit funds and institutional investors.
Structured Solutions for Property Developers
Development Capital
Accrutus Capital works with developers who present sound building projects around Australia with strong market fundamentals. Seeking funding outside of the traditional banks allows developers access to innovative structured funding to fast-tract the build. These non-bank facilities include;
- Private credit
- Mezzanine finance
- Convertible debt
- Preferred equity
- Joint venture capital
- Structured project finance
- Urgent short-term finance
Property Development Finance Australia
Senior construction debt
Primary development funding used for land acquisition and construction.
Mezzanine Finance
Subordinated capital used to bridge funding gaps between senior debt and equity.
Preferred Equity
Structured investor capital designed to support project feasibility.
Joint Venture Capital
Equity partners providing capital in exchange for project participation.
Strategic Capital for Property Development Funding
Accrutus Supports these Projects
- Residential subdivisions
- Apartment developments
- Mixed-use projects
- Industrial estates
- Land development projects
- Commercial / Industrial / Retail builds
About the Development Model
- who is the developer, their experience, capability and redentials of stakeholders?
- what is being developed, the location and demand for this type of build?
- what is the funding amount. loan to value ratios and project feasibility?
- borrowers and guarantors asset and liability position
- what security is offered, are there any pre-sales?
- what is the exit strategy and timeline of the development?
RECENT PROPERTY TRANSACTIONS
PROPERTY Finance
Loan amount $11M
Re-zoned industrial site for new commerical strata spaces
land banking
loan amount $33.7m
Innovative manufacturer winning a major government contract
Office purchase
loan amount $17.3m
Opportunistic commercial office purchase by Investment Fund
residual stock
loan amount $7.8m
Residual stock refinance and cash out to fund new opportunity
Property Development Finance Australia $5M to $50M
Structured Solutions for Property Development
Accrutus acts as a Corporate Advisor, assisting developers structure funding solutions and access private capital providers and non-bank lenders.
These alternative loans are structured as interest only facilities during the project build. Loan exit and repayment is triggered at project completion, through the sale of the property, asset refinancing, or rental income.
Solutions for development projects that fall outside the traditional banks lending criteria.
- Stretched senior construction debt (combine asset-based and cash flow loans for higher LVR, or Mezzanine structure).
- Preferred equity, hybrid and Joint Venture finance.
- Specialist security property such as purpose built or multi-purpose such as motels, childcare center’s, petrol station or caravan parks, aged care and infrastructure.
- Investment funding land-banking, sub-divisions, residual stock, distressed purchase, rural and regional property.
- Land-banking to assist with purchasing site pending design, re-zoning and DA approvals.
- No pre-sales, private investment funding rates 7% to 15%. LVR’s to To 75% of GRV.
- First and second commercial mortgages. Fast settlement for Caveats and Bridging loans.
- Assessed on strength of Sponsor’s property experience, site zoning use and approvals in place, postcode location and demonstrated population growth potential.
Non-Bank Funding Alternatives
Alternative capital solutions such as mezzanine finance, private credit and joint venture funding can provide flexible capital structures for viable property projects.
Mezzanine Finance
- Mezzanine finance bridges the gap between bank senior debt and equity investment. The mezzanine investor sits above your equity in the capital structure. It is subordinate to the senior debt (which is repaid first).
- It can fund a portion of the development costs, usually as the land component. The senior lender has the 1st mortgage, which usually includes the construction loan.
- The mezzanine debt interest is capitalised for the duration of the project and loan servicing is not required during construction.
Prefered Equity and Joint Venture Finance
- Preferred equity is not secured by a second mortgage over the property. The investor or partner is funding the project in return for equity. The investor will receive a fixed percentage of the projects profits as well as a top up of pyaments on their funds invested.
- The invesmtent partners capital amount is taken in the form of shares and ranks above the developers, but behind the senior lender.
- Developers seek out joint ventures equity partners when they are short of capital to cover the total development costs of the project.
