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Australian residential development under construction at dusk

Industries · property developers

Capital stacks that actually fund development.

Property development runs on project-by-project capital stacks: senior debt for the bulk of total development cost, mezzanine for the gap between senior and equity, developer equity at the base. Each layer comes from different lenders, prices differently, and demands different evidence (feasibility, pre-sales, project track record).

How property developers financing actually works

Cashflow patterns and lender appetite.

Property development runs on project-by-project capital stacks: senior debt for the bulk of total development cost, mezzanine for the gap between senior and equity, developer equity at the base. Each layer comes from different lenders, prices differently, and demands different evidence (feasibility, pre-sales, project track record).

We work with specialist development lenders (Wingate, MaxCap, Qualitas, Stamford Capital) for senior and mezzanine, alongside major-bank development teams for vanilla bank-fundable projects. Capital stack design is the core skill; we coordinate the layers rather than placing single facilities.

Australian residential development under construction at dusk
Townhouse site: senior bank debt + mezzanine + developer equity.

Industry lender programs

Specialist appetite for property developers.

  • Thinktank
  • La Trobe Financial
  • Stamford Capital
  • Wingate
  • MaxCap
  • Qualitas
  • Liberty Commercial
  • Assetline Capital

These lenders run programs or have specialist teams for this industry. Specific deal fit still depends on your business profile.

Anonymised case studies

Recent property developers situations.

Anonymised to protect client identity. Real shapes of deals we've helped place.

Case study

Boutique developer, 6-unit townhouse project

SituationDeveloper with two prior projects, $4.5M total development cost, 50% pre-sales achieved.

What fitCapital stack: $2.5M senior bank debt, $0.7M mezzanine, $1.3M developer equity. 18-month term, sale-driven progressive payout.

OutcomeProject funded across the stack with coordinated documentation; takeout via individual unit sales as buyers settled.

Case study

Mid-sized developer, mixed-use medium-density

Situation$25M project, retail ground floor + 32 apartments above, 60% pre-sales, 20-month build.

What fitSenior + mezzanine + equity, with bank trade-out at completion structured into the senior facility from origination.

OutcomeProject completed on schedule, takeout to bank long-term loan as commercial leasing stabilised.

Australian residential development under construction at dusk
Build progress verified by QS, drawdown released.
Pen on a settlement document, two people deciding together
Sale settlements clearing the senior facility.

Industry questions

Common questions from property developers operators.

  • Capital stack design?

    Three layers: senior debt (bank or specialist) covers 50 to 65% of total development cost; mezzanine covers 10 to 20%; developer equity fills the rest. The right ratio depends on project risk, developer track record, and pre-sales position.

  • Pre-sale requirements?

    Residential development typically requires 50 to 100% pre-sales (varies by lender and market). Commercial pre-sales requirements differ (anchor tenant, owner-user pre-commitment). Pre-sales position drives senior debt sizing and pricing.

  • GST treatment of development?

    Property development is GST-relevant; new residential and commercial sales generally include GST. Margin scheme can apply to some land transactions. This is genuinely accountant territory; we coordinate with your project accountant.

  • Project feasibility requirements?

    Lenders require robust feasibility before approval: sales projections, costs, market analysis, sales agent letters of opinion, contingency budgeting. Quality of feasibility frequently drives lender shortlist and pricing.

  • Working with multiple lenders on one project?

    Almost always required for layered capital stacks. We coordinate intercreditor arrangements, ensure facilities don't conflict on covenants, and keep the documentation aligned across layers.

Industry brief

Twenty minutes on the property developers situation.

Tell us where the business is at and what's on the table. We'll come back with a lender shortlist tuned to your industry, or an honest signal that this isn't the right product yet.