Private finance for commercial property and development.
Finance for acquisitions, refinancing, construction, project completion or residual stock, assessed against the property, project costs and repayment plan.
Business-purpose finance only. Funding remains subject to assessment, security and formal approval.
Property and project finance
When private property finance may fit.
Private commercial and development finance can support transactions that require more flexible timing, leverage, construction assessment or exit treatment than conventional policy permits.
The provider will examine the property and security, but also the sponsor, costs, approvals, delivery capability, sales or leasing evidence and the proposed takeout. For development finance, the whole capital stack must remain coherent through completion.
The strength of the borrower, project feasibility, remaining costs, contingencies and exit can be as important as the value of the land or completed asset.
Potential uses
Common uses for private property finance.
Every scenario requires its own credit, valuation and feasibility assessment.
Commercial acquisition
Funding the purchase of an investment or owner-occupied commercial property where conventional policy or timing is restrictive.
Development and construction
Facilities for approved works, subdivision or construction based on cost, value, delivery and exit assumptions.
Completion funding
Capital to complete remaining works or resolve a defined funding gap before sale or refinance.
Residual stock and refinance
Replacing construction debt or releasing capital against completed stock while the sales program continues.
Lender assessment
What the lender will check.
Strong submissions reconcile the project numbers, documentation and timeline. Gaps between those elements usually become conditions, lower leverage or execution risk.
Location, title, planning status, use, valuation and development permissions.
Experience, financial position, project team and capacity to manage issues.
Acquisition, works, professional costs, contingency and remaining funding need.
Evidence supporting revenue, stabilised value, refinance or asset disposal.
Check the full project cost
Make sure the funding lasts through to completion and repayment.
Construction draws, interest funding, contingencies, cost overruns and extension risk can change the true capital requirement. The structure should be tested through the full delivery period.
Terms to examine before commitment
- Cost to complete
Reconcile current expenditure, remaining works and contingency.
- Draw conditions
Understand quantity-surveyor reporting, equity-first rules and progress claims.
- Interest and fees
Model the cash and capitalised cost through realistic completion and sale timing.
- Exit sensitivity
Test lower valuation, slower sales, leasing delays or refinance constraints.
Prepare the scenario
What to have ready.
The document list depends on whether the facility covers acquisition, investment, development or completed stock.
- Borrower, sponsor and project entity structure
- Contract of sale, title and property information
- Valuation, feasibility and cost-to-complete information
- Planning approvals, drawings and building documentation
- Builder, consultant and quantity-surveyor information
- Sales, pre-sales, leasing or income evidence
- Current debt, required net proceeds and proposed exit
Common questions
Commercial and development finance FAQs.
Can private finance fund development without bank-style presales?
Some providers assess presales differently, but requirements vary and may be replaced by lower leverage, stronger equity, additional security or other conditions. No presale position should be assumed without a specific assessment.
What is cost to complete?
It is the amount required to finish the project from the current position, including remaining works, professional costs, interest, fees and an appropriate contingency.
How are construction funds drawn?
Development facilities are commonly advanced in stages after evidence of completed work and satisfaction of draw conditions. The exact process is set by the provider and documents.
Can completed residual stock be refinanced?
Potentially. A provider may assess completed value, remaining stock, sales history, holding costs, existing debt and the proposed sales or refinance exit.
Tell us where the project stands today.
Include the property, approvals, costs incurred, amount still required and proposed sale or refinance.