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Development Finance

Development Finance

Prudential Finance is Sydney based and services all areas of Australia. Prudential Finance has been procuring development finance for property developer clients for 15 years here in Australia.

Call 1300 550 669 now to discuss your development finance needs.

development finance
Sydney based at Aurora Place

Development finance from Banks is keenly priced at sub 6% for property developers with experience and good equity in projects.  Loan to cost ratios are around 70%. Banks have significantly pulled back lending due to heavier regulation and capital adequacy requirements, although we are finding Bank development finance approvals  are still occurring for high quality projects matched with experienced developers.

Mortgage Fund and Private Funds start at 8% p.a. and loan to value ratios are up to 70%.

Developers forced out of the Banking system due to harsher loan criteria are still getting their projects funded by mortgage funds and private lenders.

No Presales Construction Finance is available from 8% p.a.

The property boom is over and the slide in property prices has bottomed and we are now entering a stable real estate market in Australia which is an ideal time for property developers to capitalise on the very low interest rates.  Finance commentators expect interest rates to drop again in the future.

Mezzanine Finance

Mezzanine finance is readily available for financially viable real estate projects.  Interest rates start from 15% p.a. to 20% p.a.

Joint Ventures

Joint Ventures are available for projects located in capital cities or fringe areas (not regional).  Terms are by negotiation.

Equity Investors

Prudential Finance is always happy to discuss upcoming projects with investors who would like to achieve a higher interest rate than currently available  from Banks or other institutions. Invest directly into property development projects for returns of 7% p.a. to 20% p.a.

See some of the projects financed by Prudential Finance https://youtu.be/rlLQFonmO6c

Call Prudential Finance 1300 550 669

Sydney-Melbourne-Brisbane-Perth-Adelaide-Darwin-Cairns-Townsville-Rockhampton

Mezzanine Finance Real Meaning

Mezzanine Finance Real Meaning

Lately I have heard some very interesting definitions of what “Mezzanine Finance” means.

To clear up the actual meaning; “Mezzanine Finance” is subordinated debt with ranks behind a 1st mortgage/senior debt.

Mezzanine Finance - Real Meaning
Mezzanine Finance Real Meaning

Mezzanine Finance will usually be secured by a 2nd Mortgage.

I have seen other definitions where they say Mezzanine Finance “gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full”.  This is incorrect.  A mezzanine lender may or may not include rights to takeover the project in the event of default although it is certainly not the definition of “Mezzanine Finance”.

Therefore “Mezzanine Finance” is subordinated debt which ranks behind 1st mortgage/senior debt and ranks before preferred equity and equity.  The terms can vary from lender to lender.

If you require Mezzanine Finance call Prudential Finance today 1300 550 669.

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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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