Construction and Development
Construction and Development Lending
QFG has an acute understanding of the current and ongoing trends in the property development industry; this ensures that we fully understand the issues that our development clients are facing and enables us to provide concise finance advice to assist our clients, so that their development runs efficiently from the land acquisition stage, through the construction process and refinancing of residual stock into a term facility.
Our construction loans help with progressively drawn construction facilities for builder/developer or for developers outsourcing the construction works. Our facilities will take into account; construction costs, contingencies, consultants fees, council fees, project management costs, holding costs, marketing costs, capitalised interest and land and acquisition costs.
Our scope of works will cover:
- Project overview and recommendations
- Project details including a full review of the DA and the proposed project fundamentals;
- Introduction of consultants, where required, such as builders, marketers and development/project managers
- Borrower’s experience and expertise;
- Sales Plan and Marketing Strategy
- Feasibility and cash flow analysis
- Borrowers Financial Position
- Valuation instruction & review and LVR analysis
- Quantity Surveyors report review
- Funding requirements (funding table)
- Negotiation of Funding terms
- Manage negotiations between senior and junior/subordinated debt providers
- Recommendations
- Settlement
Our structured finance solutions can increase gearing up to as high as 95% of Total Development Costs to improve return on equity, release equity to the developer, access higher value projects or provide bridging finance across multiple assets.
We can offer take out/re-capitalisation of residual development stock to clear construction loans, release equity or provide an extended selling period.
