Private Lending – The Future of Development Finance


cpc-logo  March 2018

Rates from 7.5% p.a*
Flexible Presale Terms
LVR 65% on completion

As we move well into 2018 significant trends that align both investors and developers are emerging in the private lending space.

Private lenders entered the market in a big way last year, they were seen as the expensive option of last resort. This is now changing as the private lending market is taking a bigger share of overall development funding.

Why go private? The many benefits include flexibility with LTV ratios, lower presales hurdles and flexible repayment terms. Speed to settlement and funding decisions are made on the spot and can be relied upon.

Most developers have recently been hit with a perfect storm of events. Whether it’s lack of funding to settle sites under option or construction stage most developers are experiencing restrictive levels of developer equity. The realities are starting to bite.

Presales are slow, site holding costs are eating into profits and construction costs continue to rise.

Many developers have been forced by the banks to lower pricing on off the plan sales to reach high presales hurdles. This results in project revenue becoming capped in turn damaging bottom line profits.

Savvy developers are benefiting in many ways from these less onerous private funding channels.

Privates are becoming true business partners who will likely back not just their current project but also their future pipeline.

CPC provides developer advisory services to determine our clients short and long-term funding needs. We are connecting investors and developers with cost-effective opportunities that weren’t around months ago.

See below for our latest offerings and contact us today to discuss private lending options if you want to get your project ahead of the curve.

Contact – David Lovato
M +61 434 932 634
E: dlovato@crowdpropertycapital.com.au
W: www.crowdpropertycapital.com.au
* Rates will vary depending on the projects location, stage of development and private lenders appetite for risk.

Planning Alert NSW – S96 Submission will now be a S4.55 Modification


cpc-logo  March 2018

NSW Planning Update

Legislation regarding the Environmental Planning and Assessment Act 1979 has introduced a major change to the numbering of sections. From March 1st, 2018 terminology has changed – below is a cheat sheet of updates 

For Example 

  • A S96 Modification has become a S4.55 Submission
  • An S94 Contribution has become s S7.11 Contribution

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Contact CPC to better understand the full development potential of your site to maximise the value of your asset. Email: info@crowdpropertycapital.com.au

$20B Plan for Western Sydney’s Economic Powerhouse


cpc-logo  March 2018

Article by The Urban Developer

A $20 billion plan to transform Western Sydney into an economic powerhouse replete with an airport city, aerospace institute and North-South rail link was announced by Malcolm Turnbull, NSW Premier Gladys Berejiklian and eight local council mayors on Sunday morning.

The “historic” partnership has been signed off by all three levels of government and involves a multi-billion-dollar plan to invest in infrastructure as the region’s population grows from two million to three million people by the early 2030s.

At the heart of the 20-year plan is the Western Sydney Airport at Badgerys Creek, which will adjoin a fully-intergratedaerotropolis” – creating a metropolitan centre that develops its own infrastructure, land use and economy.

The federal government has pledged a $5.3 billion investment in the Western Sydney Airport.

Prime Minister Malcolm Turnbull said that the airport will be the catalyst for 200,00 new jobs for the region.

 

North South Line

Under the plan the federal and NSW governments have committed to fund the $7 billion North-South rail link, from St Marys to Badgerys Creek via the new airport, 50-50.

Turnbull said that “the objective is to have the rail open and operating when the airport opens” in 2026, describing it as part of the government’s commitment to nation-building infrastructure.

The NSW and federal governments will jointly fund a $100-million business case to investigate possible station sites for the new rail link from St Marys to the airport site at Badgerys Creek, 50 kilometres west of Sydney’s CBD.

The Badgerys Creek Aerotropolis, part of which will include commonwealth land at North Bringelly, is a metro area adjacent to the western Sydney airport zoned for manufacturing, research, medical, education and commercial activities.

NSW premier Gladys Berejiklian said the deal was a nationally significant announcement: “This is about putting western Sydney on the map globally. We open a new chapter here”.

“When people stand in Parramatta, they won’t be looking East for the best jobs, they’ll be looking West for the best jobs.”

NSW Premier Gladys Berejiklian

The plan includes the introduction of smart digital technology, STEM-education facilities to train skilled workers for the airport city, rapid bus services linking Liverpool, Penrith and Campbelltown with the aerotropolis and an investment attraction office to attract investment.

The government also announced a new planning regime to cut development costs and boost housing supply.

Western Sydney Leadership Dialogue chairman Christopher Brown said that the north-south connection was a steel spine for the region.

“Badgerys Creek Airport represents a new era for the region and it is vital that our booming cities in the south-west and north-west are connected to it, from the outset. This is, after all, not Sydney’s second airport, but Western Sydney’s first airport,” he said.

Badgerys Creek Airport

Brown said that the north-south link, along with the West Metro, which connects Sydney to Parramatta, were the two most important transport projects for Western Sydney when it came to employment generation, improved livability, housing affordability and reduced congestion.

In a joint statement Labor’s Shadow Infrastructure Spokesman, Anthony Albanese and state Labor Leader Luke Foley said: “Federal and State Labor have long argued for a Western Sydney Rail Link with a North-South line to boost productivity and improve the quality of life of residents of the region.”

Foley said a State Labor Government would deliver the rail link faster because it would not build the Northern Beaches Mega Tunnel nor waste $2.5 billion on stadiums.

“Our focus is Western Sydney,” Foley said.