Commercial Property Development – How has the lending market changed?

Lending for commercial property development has tightened in recent months, in part due to APRA’s (Australian Prudential Regulation Authority) requirement for higher presales.

While sourcing project finance may seem more complex, understanding the changing environment is essential for developers – big and small!

Getting your project off the ground, even with little or no presale options, starts with knowing the essential lending criteria that banks and secure non-bank lenders require in today’s market. That’s where a professional finance broker, someone with a proven track record in commercial property and development finance can help.

So, what do you need to know? Here’s a start:

  • What is the difference between bank and non-bank lenders?
  • What are the lending ratios for your project?
  • How can you best present your project for financing?
  • What are alternative finance solutions?
  • What are current benchmark interest rates, fees and charges?
  • Personal or corporate guarantees – what’s right for me?
  • Is there an appetite for offshore capital?
  • Can a corporate loan note be used to my advantage?

Whether your project involves residential units, land subdivision or is industrial in nature, in just one consultation, a commercial finance specialist can help you to answer these questions, better understand the market and provide you with some clear direction to make your project happen.