Diverse experience in property development; renovation of blocks of apartments, Hotel conversion to apartments, building brand new town homes and luxury apartments.

Experts in Company Title, Strata Title and Torrens Title property developments.

We can assist you from development site feasibility, raw site acquisition, finance, development application, approval, management, marketing advice, property development problem solving.

Personalised property development mentoring is available for people new to property development and wish to learn the profession of real estate development.

Call 1300 550 669 to discuss your property development project or complete the form.

The post Property Development Advisory Services appeared first on Prudential Finance.

Prudential Finance can arrange development finance with no presale requirement before construction works commence.

Get your project moving without presales!

Interest Rates from 9% p.a.

Loan to value ratio 60% to 65% of valuation GST exclusive

Loan to cost ratio a of maximum 80% GST exclusive

We also are able to arrange presales through our Renounceable Sales Contracts. foe more information click Renounceable Sales Contracts.

Through Prudential Finance’s long established relationships with investors and lenders, we are able to offer reliable sources of private funds for construction loans on favourable terms.

Call Prudential Finance 1300 550 669 for your construction funding with no presales.

The post Development Finance No Presales appeared first on Prudential Finance.

Some important changes that you should be up to speed across Staged and Concept Stage Development Applications. These changes detailed below has implications for any Developers and any related parties/Stakeholders of large scale projects who have pending, or proposed, applications for concept proposals in NSW.

Key changes

• Staged Development Applications will be renamed Concept Development Applications, to better reflect what they contain in practice,
• A Concept Development Application will be able to be followed by only ONE development application for the site, rather than the multiple applications currently required, and
• A new provision (section 83B(5)) will make it clear that the impacts of carrying out the development may be considered when the concept proposals are being assessed, but must be considered where approval to carry out works is sought.

 Reasons for the changes

“The Government proposes to amend the legislation, so it is explicitly clear that staged development applications can include only a concept approval and a single subsequent detailed application. Construction impacts will be fully assessed before any work can start.

“This two-stage approach has become common practice in the development industry. The Government is simply making the legislation clearer to ensure the current pipeline of DAs worth $8 billion can proceed without delay.

“Staged DAs tend to be for larger, more complex projects. A concept approval makes it clear what the high-level planning limits are for a development, including its use, shape and scale, and height which provides certainty to developers, financial backers, stakeholders, and the community.

“Having multiple DAs when one would suffice would create time delays and additional costs to the applicant, with no commercial, technical or community benefit.”

What’s the impact of these changes?

The Decision will terminate single stage concept DAs, and will mean that all concept DA’s need more detailed assessment of Construction Impacts for all stages of the development proposal at the Front End. This could potentially add further costs and time to the concept DA process.

Further information can be obtained from NSW Planning and Environment website below and or speak with your Planning Lawyer.

http://www.planning.nsw.gov.au/Policy-and-Legislation/Under-review-and-new-Policy-and-Legislation/Legislative-amendment-for-concept-proposals

James Okkerse

Disclaimer

“Prudential Finance are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories. 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.”

The post Development Application Changes NSW appeared first on Prudential Finance.

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.

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.

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.”

The post GAIC Rates appeared first on Prudential Finance.

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.

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

The post NSW Section 94 Changes appeared first on Prudential Finance.

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.

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.”

The post Multiple Funding Channels for Property Developers appeared first on Prudential Finance.

The post Development site values start to crack appeared first on Prudential Finance.

Prudential Finance established 21 years has proven relationships with development finance lenders and investors who are interested in providing funds for property development finance Sydney Melbourne Brisbane.

Private Lenders

Our private lenders/investors can lend up to $500M+ on senior debt (1st mortgage) and mezzanine (2nd mortgage) or preferred equity (Equity in development company). read more

Lending Opportunities

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.

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.

The post Development Finance Sydney Melbourne Brisbane appeared first on Prudential Finance.

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.

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.

The post Development Finance Sydney Melbourne Brisbane Perth appeared first on Prudential Finance.

STEINERT TIPS GOLDEN DECADE FOR SYDNEY Stockland chief executive Mark Steinert has denied claims national house prices have peaked, arguing some cities are on the cusp of a “golden decade” of price growth.

Mr Steinert the chief executive of Australia’s largest residential developer believes there is an undersupply of housing in capital cities and anticipates a 4 to 5 per cent compounded growth in house prices for the predicted future due to this demand-supply fundamental. Housing supply will increase with major roads and infrastructure projects, in conjunction with accelerated land releases and planning changes in specific areas.

Morgan Stanley economist Malcolm Wood told investors in a note the current housing cycle was in danger of being held back, if interest rates weren’t cut again. “If you’re an investor, you’ve missed the boat,” Mr Wood said, with a potential oversupply of apartments decreasing their value in inner-city areas and house price growth slowing down.

However Mr Steinert remains positive, with factors such as improved business confidence, greater job security and including migration flow (Australia’s population increases by approximately 34,000 in a month from migrant) adding to the demand of dwellings. Stockland delivers around 5000 homes a year.

The property market in Sydney, Melbourne and Brisbane should show positive growth for the foreseeable future.   Property developers have a stable property and finance market to operate in at the moment.  Prudential Finance will provide property developers with competitive development finance, mezzanine finance and also joint venture select property development projects.

Call Prudential Finance 1300 550 669

The post Development Finance – Sydney appeared first on Prudential Finance.