Project Overview:
• Property Type: Townhouses
• Location: Kallangur, QLD
• Property End Value: $11 million
Client Challenge:
Our client purchased the site several years ago and added value by obtaining Development Approval (DA) for 14 townhouses significantly increasing the land value. CPC sourced a lender who would fund the project from start to finish without a need for the borrower to tip in any further cash.
CPC’s Solution:
• $7 million stretched senior construction loan on a a 15-month term, 75% Loan-to-Value Ratio (LVR) on completion value, and an 8% interest rate on drawn funds.
• This facility was structured on a Cost-to Complete basis with capitalised (prepaid) interest and allowed funding for infrastructure contributions, marketing, sales commissions and construction.
Key Considerations:
• Pre-Sales Strengthened Lending Position: The developer secured 50% pre-sales prior to construction, which substantially de risked the lender’s debt exposure. As a result, the lender was able to increase the loan limit, providing a funding structure that covered 100% of the remaining development costs.
• Efficient Loan Structuring: The loan was structured with interest capitalisation, ensuring repayments were only required on drawn funds, minimising borrowing costs.
• Fast Approval & Settlement: CPC reported regularly on pre sales and secured loan approval and settlement within four weeks, ensuring the project could commence ASAP.
Outcome:
The project is currently under construction, progressing on schedule with forecast completion on time and on budget for December 2025.
The client praised CPC for structuring a highly efficient funding solution, allowing them to complete the development while optimising financial resources.
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Loan Exit Strategy:
The remaining pre-sales will be exchanged during construction allowing the full loan amount to be repaid at project completion.
This case exemplifies CPC’s commitment to providing construction financing solutions through its network of trusted private lenders, enabling clients to leverage equity in their projects and achieve their development goals.
Here’s what the client had to say about their experience:
“David’s extensive knowledge and connections were invaluable. He helped me at every step and provided unlimited expert advice on all aspects of the project. I would highly recommend CPC and look forward to working with David again on my next project.”
Contact Us
Feel free to reach out with any general questions you may have about CPC and the services we offer.
CPC Lending Solutions is a development finance specialist. We help borrowers overcome their funding challenges by sourcing market leading loans suited to your unique situation. Contact us at [email protected]
Legal & Compliance
Crowd Property Capital Pty Ltd (CPC)
A registered company under the Corporations Act 2001, ACN 600 539 544
An accredited member of the Finance Brokers Association of Australia (FBAA) Member No M-352808
A licensed Corporation under the Property, Stock and Business Act 2002, Corporation License No. 10065109.
A member of the Real Estate Institute of NSW (REINSW)
David Lovato (Sole Director) holds a Certificate IV in Finance and Mortgage Broking and Property Services (Real Estate Agents License No 201 604 57 )
