Development
If you’re in the development industry, you know how hard it can be to obtain finance. Conditions are tightest in the residential development sector,
but the effects of the downturn are also being felt on retail and mixed-use projects.
Fortunately, Videre Finance has a network of relationships to help you structure and source traditional bank facilities,
non-bank options as well as what we like to call ‘MEQUITY’ solutions (Mezzanine / Preferred Equity).
But the key for anyone seeking finance is to know who you are borrowing from. At Videre Finance, we understand all facets of the capital
market and can provide information about who to deal with and, importantly, who to avoid, on particular transactions.
Site Acquisition
Traditionally, developers purchase a site out of cash, work-up the approvals, achieve sales and then head to a financier to fund the completion of the project.
Here at Videre Finance, we understand that sometimes you need financial assistance while settling the site and preparing for construction. We work with a number of lenders that are happy to provide these types of short-term solutions.
Residual Stock
Residual stock loans have become a critical tool for developers trying to manage their cash flow. Whether you are wanting to refinance an existing construction loan, release equity from unencumbered property or develop and hold longer-term – we can help structure the appropriate outcome for your business.
Commercial Property Investment
While traditional banks still have a stronger appetite for investments than for construction finance, there has been a push to reduce
loan-to-value ratios both for the acquisition of new property and the rollover of existing loans.
Thankfully, the non-bank sector has stepped in to provide different options to the market that can incorporate higher gearing and
lower servicing covenants (both Interest Cover Ratio and WALE).
Smaller commercial investment loans can also benefit from:
– Longer terms (up to 30 years) – Low-doc application processes
– Low touch ongoing management (no annual reviews / revaluations) – SMSF appetite