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Commercial Property Loan
A Prudential Finance commercial property loan is secured by first mortgage or second mortgage over real estate. This type of loan is also known as “Asset Lending” finance. Private property finance is for company borrowers who have reached their credit limit with the Banks and wish to continue purchasing property, or cannot demonstrate serviceability through traditional means for Banks.
If you need a faster loan settlement, see our Short Term Loans page.
Q&A
A commercial property loan is finance secured by a non-residential property such as office, retail, industrial, warehouse, medical or mixed-use asset. Funds are used for acquisition, refinance, investment or business purposes.
Prudential Finance arranges commercial property loans from $1 million to $500 million or more, depending on the asset, borrower and funding source.
Eligible security includes office buildings, retail premises, industrial sheds, warehouses, shopping centres, medical and specialist commercial property. Regional and metropolitan assets are both considered.
LVRs up to approximately 70 percent are typical for commercial property, with higher gearing possible via mezzanine finance or preferred equity on case-by-case assessment.
Interest rates vary based on asset quality, LVR, borrower strength and loan term. Private commercial rates typically start from around 7.99 percent per annum, with bank-style rates lower where borrowers qualify. Current pricing is quoted per application.
Individuals, companies, trusts and SMSFs may borrow, subject to the loan being for business or investment purposes. Loans regulated under the National Consumer Credit Protection Act are not facilitated.
Not always. Loans can be structured around fully leased assets, partially leased, vacant acquisitions or value-add scenarios, with LVR adjusted to reflect the income profile.
Settlement typically takes four to six weeks once a formal approval is issued, though urgent transactions can be accelerated where security, valuation and legal work permit.
Yes. Refinance is a common reason for clients to engage Prudential Finance, particularly where a current lender has declined extension, increased pricing or reduced LVR.
Typical requirements include a loan application, company and director details, property information, recent valuation if available, tenancy schedule, two years of financials and a statement of position.
Yes. Low-doc and alternative income verification applications are considered where serviceability cannot be demonstrated through traditional means, usually with adjusted LVR and pricing.