Construction Finance

CONSTRUCTION FINANCE

NO PRESALE CONSTRUCTION  

MAJOR BANK & NON BANK FINANCE

MEZZANINE FINANCE & PREFERRED EQUITY

Simplicity has a strong track record of sourcing development and construction loans in Sydney, Melbourne, Brisbane, Adelaide & Canberra for projects. We source capital from all the banks and a long list of alternative funding sources. The Team have extensive experience in projects with GR up to $1.5BN A mezzanine is any subordinated debt or preferred equity instrument that represents a claim on a company's assets that is senior only to that of the common shares. Mezzanine financing can be structured either as debt or preferred stock.

CONSTRUCTION LOANS - Majors

From $2 – 500+ million

Facility limits up to 70% LVR •

Maximum Loan to Cost Ratio’s up to 80% 

Bank margins commencing at 1.50% with line fees from 1.50% •

Non bank funds from 6.75% with a 1.5% Estab;

No pre-sales requirements for approved projects below 60%

STRETCH SENIOR CONSTRUCTION DEBT

Typically $5 – 50 million

Maximum Loan to Cost Ratio’s up to 90% +

Margins ranging from 2.75% & Line Fees 2.75%

Lower and No pre-sales construction solutions for suitable projects;

MEZZANINE DEBT

Typically $2 – 15 million

Maximum Loan to Cost Ratio’s up to 90%

Margins ranging from 12%+ upwards

Est Fees of 2% reducing for larger transactions

DEVELOPMENT SITE FUNDING

Typically $1,000,000 – $50,000,000

Facility limits generally 65% LVR however we have provided up to 80% LVR in some cases

Major Bank margins commencing at 1.50% with line fees from 1.50%

The non-Bank solution chosen is a private lender than the cost of funds is typically 7.95%pa 

Recent Example - No presales construction Sydney 
Project: 111 apartments 
LVR: 60% of GR 
Presales: Nil 
Loan Amount: 42M

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Fax (02) 9475 0901