Formation Finance

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Property Development Finance & Private Lending

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Formation Finance can assist in all stages of the property development cycle, from funding the initial land purchase, raising funds for soft costs and development approval, funding the construction to refinancing on completion (residual stock loan). We have access to different forms of capital which allows the developer to get their projects underway now.

We are our developer clients' trusted finance partner as we:

  • Have access to a network of trusted capital partners including banks, non-bank lenders, family offices and private investors
  • with our development finance expertise, can provide you with the right funding with competitive rates, speed and certainty
  • Have first-hand development experience and connections to truly understand and help you achieve your goals

Loans we offer include:

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Site Acquisition Loan

Finance to assist with the acquisition or refinance of land to prepare the land for development.
  • Generous LVR up to 70%
  • Quick approvals
  • Flexible loan term to suit your project timeline
  • No income documentation required
  • No Development Approval (DA) required
  • Cash out/ working capital allowed
  • All locations considered

 

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Construction Loan

Tailored development and construction finance solutions to help you start your projects sooner
  • Generous LVR up to 70% of GRV
  • Quick approvals
  • Flexible loan term to suit your project timeline
  • No presales required
  • No income documentation required
  • Related party builder considered
  • All locations considered
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Residual Stock Loan

Early equity /profit release from a completed project to provide working capital to borrowers.
  • Generous LVR up to 70%
  • Quick approvals
  • Flexible loan term to suit your project timeline
  • No income documentation required
  • Near-complete projects considered
  • Cash out/ working capital allowed
  • All locations considered
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Working Capital / Bridging Finance

Providing working capital to borrowers, or to refinance an existing loan.
  • Generous LVR up to 70%
  • Quick approvals
  • Flexible loan term to suit your cashflow
  • No income documentation required
  • Near-complete projects considered
  • All locations considered
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Mezzanine Loan

Second ranking loan facility to reduce borrower’s initial equity contribution requirements
  • LVR stretched up to 75%
  • Quick approvals
  • Flexible loan term to suit your project timeline
  • No income documentation required
  • Cash out/ working capital allowed
  • All locations considered
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Preferred Equity & Joint Venture

Funding up to 95% of total development cost
  • Funding up to 95% of total development cost
  • Interest and/or profit share payable upon maturity
  • Strategic partnership benefits
  • All locations considered

Funding Guidelines:

Development Site LoansConstruction LoansResidual Stock/ Bridging LoansMezzanine Loans
LVR (up to) 70%70%70%75%
Loan Term3-24 months12-24 months3-24 months3-24 months
Rates (from)8.49% p.a.9.99% p.a.8.49% p.a.15.00% p.a.
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FAQ :

Most property development projects entail a substantial amount of construction debt funding that must be repaid upon completion. Specifically, for residential projects like townhouses and land subdivisions, the objective is usually to sell enough units to cover the construction debt. However, if the developer falls short of achieving sufficient sales, they may need to refinance the remaining balance. This is where a residual stock loan can prove beneficial. Read more.

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Level 5/ 400 Little Collins Street, Melbourne VIC 3000
+61 3 9060 7878
info@formationfinance.com.au

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