We arrange new construction loans from as little as $150,000 for the first time commercial property builder to the more sophisticated larger scale commercial construction loan of $10,000,000 plus.
A commercial construction loan is a type of commercial property finance that can be provided in a number of different forms. It is important to match a construction loan with the cash flow cycle of the construction project in order to minimise the amount of equity required and maximise the projects return.
We are able to offer our clients the following commercial construction loans.
Construction Loans against the value on completion
This type of construction loan allows funding to be applied against expected value of the project upon completion. In some circumstances this can allow up to 100% of the projects’ hard costs to be financed.
Mezzanine Construction Loans
Mezzanine finance can support a construction loan either in conjunction with commercial property finance or as a second mortgage. Mezzanine funding reduces the equity requirement of the project freeing up cash for other projects or minimizing the amount of upfront cash required to fund the construction.
Construction Loans against cost
This is the traditional commercial construction loan where lenders will advance a certain percentage of the construction cost.
Normal construction loans will fund 80% of the hard costs of construction, however we have access to lenders who recognise the other soft costs associated with the construction and can extend against this total construction cost.
We realise that each lender will have their different appetites and prejudices for each different set of circumstances. We have over 30 lenders on our lending panel and they range from private lenders to the major domestic and international trading banks.