Written by David Lovato – CPC Development Lending Solutions
A Brisbane-based developer identified a lucrative opportunity to boost the profitability of his townhouse project by acquiring an adjacent site. Securing finance, though, was going to be a massive challenge, due to apparent equity shortfalls.
Enter Crowd Property Capital (CPC), a construction finance specialist.
CPC identified a lender willing to provide 100% funding after CPC explained the project’s strong financial potential and limited risk profile.
CPC secures extra finance
The approval of the DA triggered interest from other developers, due to the immediate increase in the site’s value, its more impressive scale and its excellent location (Kallangur, a growth suburb 45km north of Brisbane). The developer opted not to sell.
CPC then secured further financing from the lender, reflecting the site’s increased value, alongside a cash equity release for the developer’s short-term funding needs.
They also explored securing investment from the Queensland government as part of their support of affordable housing and build-to-rent schemes.
When problems occur, CPC finds solutions
Set to complete in 2027, the project will deliver 156 affordable townhouses.
Despite facing inevitable delays, CPC has helped keep the project on track by by renegotiating the loan term with the lender and finding a mezzanine lender (junior lender) to help with the acquisition costs.
The CPC advantage
We’re grateful to the developer for giving us a glowing testimonial:
“We knew David with his extensive lender networks could provide us with options and also assist us with development expertise given his background,” he said.
“David became a key advisor on our project by driving it through a financial lens. When we realised a larger project would become more feasible, CPC quickly arranged for one of his lenders to utilise the uplift and secure the additional block. We also took the opportunity to withdraw some equity within the project that we will use for a short-term funding.”
This story is just one of many where CPC turns complex financial challenges into success stories for developers. That’s why so many developers love working with them.
Crowd Property Capital is a property development finance specialist. We help property developers overcome their funding challenges by sourcing loans for land, construction and residual stock. Contact us at [email protected] or fill in this form.