Category Archives: Development Finance

Property Development Finance Rates

Prudential Finance property development finance rates start from 9.5% per annum .  Loan amounts for construction loans are from $20M to $250M.  Establishment fee 1.5% per anum

Most private construction loans lenders are charging 12% per annum plus, then a 2% establishment fee for loans over $20M.

Property development finance rates for loans over $150M to $500M plus can start from 13% per annum to 15% per annum.

Sub $20M property development finance rates start from 9.5% per annum to 12.5% per annum. Establishment fees 2% of total loan amount.

More about development finance.

Property Development Finance Rates

Our experience in property development and development finance provides you with an edge in the market and we will endeavour to achieve the best property development finance rates for our clients.

Whether you are a conservative property developer seeking low interest rate finance from a Bank, Building Society or a developer seeking more flexible funding facilities from private lenders with no presales or mezzanine finance for higher gearing and less equity, Prudential Finance will provide a funding solution to cater for your requirements.

Property development joint ventures are available on a project by project basis.

Construction Loans

Prudential Finance has Mortgage Funds, Private Lenders & High Net Worth Individuals who will lend construction loans without the need for presales prior to commencement of construction.

We have very large investors that can provide 1st mortgages and 2nd mortgages up to $50M or more for projects that do not comply with normal Bank criteria or the loan amount is too large for a private lender or mortgage fund to finance.

A property developer’s ability to acquire new projects directly relates to the amount of equity/cash the developer is required to contribute to the project. read more

The talented Prudential Finance team headed by Brett Collins has unparalleled  depth of development and development finance experience, who can relate to the financial needs of property developers.

Partner your development finance and construction loans with Prudential Finance
Sydney – Melbourne – Brisbane – Perth

property development finance rates

Call Prudential Finance today on 1300 550 669

GAIC Rates

Victoria’s Growth Area Infrastructure Contribution (GAIC) historical GAIC rates changes.

The growth areas infrastructure contribution (GAIC) was established to help provide infrastructure in Melbourne’s expanding fringe suburbs.

It is a one off-contribution payable on certain “events” usually associated with urban property development. These are usually buying, subdividing, and applying for a building permit on large blocks of land.

GAIC Rates

Below you can see a Balanced increase in each band per year.
Type B1/B2 and C have higher rates as relates to recent purchases, B1/B2 on or after 2008/2009, C on or after 2010 and or are in investigation areas such as Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea and Wyndham.

GAIC Rates

Deferred GAIC Interest Rate

Interest rate applied on Deferred GAIC Liability which is linked to Victorian 10yr Government Bond has compressed over time for several reasons, most obvious is unprecedented global monetary policy applied (QE) having a significant effect on asset prices/interest rates.

I think it’s important to take a broader view if your deferring GAIC as you can see rates are slowly changing course, 2016-2017 was 2.3%, increased to 2.9% for 2017-2018. You may think this is only a small move, but we are pre-empting perhaps a longer-term upward trajectory where further increases can become more onerous when deferring GAIC payments.

GAIC Rates 2

If you need further information on Growth Area Infrastructure Contribution you can find here;

https://www.sro.vic.gov.au/growth-areas-infrastructure-contribution

Data source SRO Victoria

James Okkerse

“Prudential Finance does not provide financial product advice and does not hold an Australian Financial Services Licence. Prudential Finance recommends that investors consider their own objectives, financial situation and needs before proceeding with any investment and seek professional advice. All information contained within this Website is specifically structured for corporate, business, commercial, construction clients, wholesale and professional investors.”

 

 

NSW Section 94 Changes

NSW Section 94 Changes

A friendly reminder of the changes which provide some form of clarity albeit will introduce another level of uncertainty and unease from Industry Stakeholders with NSW Section 94 Changes.

NSW Section 94 Changes

Changes to Section 94 of the Environmental Planning and Assessment Act, which allows local councils to levy contributions for public amenities and services because of new development, will now be Uncapped.

Caps that have been fixed since 2010;

  • $30,000 in greenfield areas
  • $20,000 in infill areas

(per dwelling or residential lot).

New structure

Greenfield;  

  • $35,000 on 1 January 2018;
  • $40,000 on 1 July 2018;
  • $45,000 on 1 July 2019; and
  • no cap from 1 July 2020 (provided that the levies are in-line with an IPART reviewed contributions plan).

 Infill Areas;

  • $25,000 on 1 January 2018;
  • $30,000 on 1 July 2018;
  • $35,000 on 1 July 2019; and
  • no cap from 1 July 2020 (provided that the levies are in-line with an IPART reviewed contributions plan).

If you wanted to read further, NSW Government Planning circular below.

http://www.planning.nsw.gov.au/Policy-and-Legislation/~/media/EFBE020CD61C4FFD8BC4F51591A447CF.ashx

James Okkerse

 

 

 

Multiple Funding Channels for Property Developers

Multiple Funding Channels for Property Developers are Imperative

The vast majority of developers we help obtain Construction and or Development Finance tend to focus only on private funding solutions as it has been a reliable way to efficiently source funding.

Multiple Funding Channels for Property Developers

We are seeing an increasing number of new clients who have historically relied upon bank funding who are now migrating over to non-bank lending.  Its no surprise that bank funding has become increasing difficult due to pressure from regulators which is heavy publicised and hence a shift to private funding.

I think its important to have a mixture of both bank and non-bank funding channels/relationships in place at all times. This is a common conversation we have with new and existing clients.

There are several pros and cons of bank and private funding such as interest rate, timeframe, pre-sales, LVR differentials etc, etc but to me no matter what cycle we are in, building robust relationships and having multiple options with both Bank and Private Funding will be paramount to developers who have or are working on building a healthy pipeline.

What I do know, is the landscape is continually changing and either you adapt or you fall behind as the future is unknown.  Most developers may already have coverage from both sides but we continue to hear otherwise and wanted to reiterate our view in event we can help someone who may be thinking about this.

James Okkerse

We assist obtaining multiple funding channels for property developers.  Please see our Development Finance Page

“Prudential Finance does not provide financial product advice and does not hold an Australian Financial Services Licence. Prudential Finance recommends that investors consider their own objectives, financial situation and needs before proceeding with any investment and seek professional advice. All information contained within this Website is specifically structured for corporate, business, commercial, construction clients, wholesale and professional investors.”

Development site values start to crack

Development site values start to crack

“Metropolitan development sites values, which have surged in recent years on a wave of Chinese money, are showing the first signs of correcting after developer Nicholas Smedley secured two sites at discounts of 30 per cent or more after vendors rejected his original off-market offers, thinking they would get more through a public campaign.

Chinese buyers have quit the market in droves, and off-the-plan sales rates have slowed drastically in Sydney and Melbourne meaning the building boom is starting to wane.”

For the full article go to Australian Financial Review

Development Finance Availability

With property development site values falling due to market forces and Banks tightening lending criteria, private property loans are the flavour now and into 2018.

Prudential Finance has private development loans available for experienced property developers, loans from $5M to $1B.

Call 1300 550 669 to discuss your development finance requirements.

Read more Development Finance

Development Finance Sydney Melbourne Brisbane

Development Finance Sydney Melbourne Brisbane

 

Prudential Finance established 14 years has proven relationships with development finance lenders and investors who are interested in providing funds for property development finance Sydney Melbourne Brisbane.

Development Finance Sydney Melbourne Brisbane
Watch the Development Finance Video

Private Lenders

Our private lenders/investors can lend up to $50M+ on senior debt (1st mortgage) and mezzanine (2nd mortgage) or preferred equity (Equity in development company). read more

Lending Oportunities

Prudential Finance is also seeking opportunities to directly invest or loan funds in quality projects.  If you have a development project or commercial real estate requiring funding call Prudential Finance.

Mezzanine Finance

Mezzanine finance is readily available for projects.  Interest rates from 17% p.a.  With Banks tightening their lending criteria and in general reducing loan to cost ratios (LCR) down to 70% or less has stressed the development finance market. read more

Investment Opportunities

Investors interested in participating in property development projects or lending money secured by mortgages over real estate are invited to discuss their investment requirements.  We have a number of property investment and lending opportunities coming up.

For for extraordinary property development finance Sydney Melbourne Brisbane call 1300 550 669

Development finance applications in Perth Western Australia, Adelaide South Australia, Darwin Northern Territory, Hobart Tasmania will also be accepted.

Property Development Finance

Property development finance and construction loans are are available form our private lenders and investors.

Property Development Finance
Prudential Finance “The Developer’s Financier”

Prudential Finance has cashed up lenders and investors for Senior Debt, Mezzanine Finance and  Equity for Property Joint Ventures.

Preferred Loan Amounts

Senior Debt $2M

Mezzanine Finance $2M

Equity Contribution to Joint Ventures $1M

Property Development Presales

We have private lenders that will advance construction funding without presales.  Interest rates start from 9.5% p.a.

If you would prefer to meet Bank presales hurdles although do not have enough sales to comply; go to Evolution Living Presales to learn about “Renounceable Sale Contracts”

Property Marketing & 3D Visualisation Fly throughs

We recommend Evolution Living Media for marketing content and material, corporate video production in Sydney.  Go to Evolution Living Media Marketing & Fly Throughs  Evolution Living Media is a full Digital Marketing Agency.

Digital Marketing Agency
Digital Marketing Agency

Call Prudential Finance today to discuss your property development finance needs 1300 550 669

Development Finance Sydney Melbourne Brisbane Perth

Development Finance Sydney Melbourne Brisbane Perth

The Australian property boom has bust, bottomed, now the market has stabilised and in some locations real estate prices are on the way up.

The return of the property market, private development finance Sydney Melbourne Brisbane Perth is readily available from interest rate starting at 8% per annum.

Property developers have the ideal finance environment to move forward with property development projects in a slowly rising property market combined with low interest rates from the major Banks.

Development Finance Sydney Melbourne Brisbane Perth

Mezzanine finance is abundant and interest rates have become competitive.

Prudential Finance will provide property developers with professional finance services, from working up the numbers on a new project through to settlement.

For further information go to our Development Finance page or call 1300 550 669.

Development Finance – Property Development

Development Finance – Property Development is readily available for Property Developers in NSW, Sydney, VIC, Melbourne, QLD Brisbane, Cairns.

The rising property market has given lenders renewed confidence in development finance.

Development Finance, Construction Finance interest rates start at sub 6% p.a. for established property developers.

Call Prudential Finance today to discuss your property development finance needs.

Development Finance Melbourne

Development Finance Melbourne

Prudential Finance has just arranged a development finance melbourne $4M Private loan approval for a multi-unit project in the inner suburbs of Melbourne without pre-sales. We are finding Melbourne’s inner suburbs as a strong market with active buyers.
Prudential Finance “The Developer’s Financier”

development finance melbourne

 

 

 

Call us today to discuss your development finance requirements.

the property developer's financier

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Phone 1300 550 669
International +61 4 0084 0756

PO BOX 1450 Double Bay NSW 1360

Office
Level 25 Aurora Place, 88 Phillip Street
Sydney NSW 2000 Australia

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