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Unlike many lenders Creative Finance has the benefit of having close connections with people with many years experience in the Property Development industry. So not only can we understand your needs to ensure you get the appropriate finance package but we are also available to provide advice and assistance at all stages throughout the life of your project.

Through our extensive network of lenders and professional associations Creative Finance can organise finance for projects of all sizes and types. Given that every project and developer is essentially unique we recommend you speak with a Creative Finance Consultant about your project and needs.

Project Term

Depending on the site Creative Finance can assist you with everything from site acquisition to project approval and construction and help match and manage your debt to the appropriate term required.

Loan to Value Ratio (LVR)

The LVR available will depend strongly from project to project and the experience of the developer. At Creative Finance we can assist you in the following for both hard and soft costs:

• Senior Debt funding up to 80%
• Mezzanine debt up to 90%
• Equity partners above 90% (subject to availability)

Interest Rates

When it comes to property development interest rate will vary dramatically across lenders. Different lenders also have different areas of expertise – so ensuring you are matched with a lender who better understands the risks of your project may create interest savings that add substantially to the profitability of a project. However in general the risks looked at can be summarised by the following 3 points:

Developer Risk – The risk of the person responsible for the development. Factors may include:

• What is the experience of the developer?
• What projects have they done previously and how have they performed?
• What is on the line for the Developer in this project?
• How strong financially is the builder and what is their ability to obtain Finance?

Project Risk – what risks are there to the project of completing profitably and as expected. Factors may include:

• What is the demand for the product and are there risks to this demand between now and completion?
• What is the risk of potential competition in the area?
• What is the projects sensitivity to unexpected factors delaying completion or increasing cost to complete?
• Are there any peculiarities to the site involved?
• Are there fixed price contracts for building in place?

Exit Risk – what are the risks for exiting the project on completion? Factors may include:

• What are the levels of presales?
• What proportion needs to be sold to repay any lending?
• What is the ability for the project to obtain replacement finance on completion if necessary?