PROPERTY DEVELOPERS FINANCE
Specialised funding for property developers
Fuel Your Vision With Property Development Finance
Bringing a property development project to life requires significant capital and a financing partner who understands the unique challenges and lifecycle of development. Securing funding for land acquisition, construction, or refurbishment can be complex and demanding. Our specialised Property Developer Finance is designed to provide developers like you with the financial backing needed to kick-start new ventures or ensure the successful completion of ongoing projects. We offer targeted funding solutions that go beyond traditional lending, focusing on the viability of your development and your track record as a developer.
Specialised Development Finance
Provides finance specifically for large-scale property development projects, including new builds, conversions, and refurbishments.
Supports Project Lifecycle
Funding is available whether you are looking to commence a new development or require finance to complete a project already underway.
Secured By The Development Property
Funding is primarily secured by a first mortgage bond registered over the development property itself.
Large Loan Facilities
Access significant funding, with facilities available up to R100 million, well beyond conventional short-term limits.
Who It’s For
Our Executive Property Development Finance is specifically for highly experienced property developers and successful property development companies in South Africa with a demonstrable history of delivering successful projects. If you have an excellent track record, a strong balance sheet, access to necessary equity, and are looking to finance significant development projects requiring substantial capital (typically above conventional limits), this executive-tier solution is designed to be your funding partner.
- Requires Developer Track Record: Designed for developers with a history of successful projects, typically requiring experience with at least two prior developments.
- Requires Pre-Sales: A key condition for funding is having pre-sales agreements in place for units within the development.
- Requires Development Rights & Permissions: Loan is contingent on all necessary rights, permissions, and zoning for the development being secured.
Benefits
- It provides access to the necessary capital to either commence your development vision or ensure its timely completion, preventing project stalls.
- Pursue larger investment opportunities with access to significant loan facilities up to R100 million, overcoming the funding barriers often faced with standard finance products.
- The funding is structured around the value and potential of the development property itself, leveraging your project as the key security.
- Our requirements, such as needing pre-sales and proof of a track record, align with sound development practices and can help facilitate smoother project execution.
- Partnering with a lender who understands development finance streamlines the funding process, allowing you to focus on delivering a successful project.
How It Works
- It begins with the submission of your application, including comprehensive details about your proposed or ongoing development project, your experience as a developer, and the secured pre-sales.
- We evaluate the commercial viability of the development, review the secured rights and permissions, and assess the adequacy of the proposed security over the development property.
- If the project meets the lending criteria, funding is approved.
- The finance is typically disbursed in stages as the construction or development progresses, against certified milestones, with the loan secured by a first mortgage bond over the property until the development is complete and units are sold/refinanced.
Frequently Asked Questions
What types of property development projects do you finance?
We provide finance for various property development types, including new residential, commercial, and industrial builds, as well as the conversion or refurbishment of existing properties into developments.
What does the finance cover?
Our finance is primarily for the costs associated with the development itself, which can include land acquisition (if part of the development package), construction costs, and necessary infrastructure.
What is the typical loan amount or range?
While project finance is assessed individually, funding amounts facilitated are typically in the range suitable for property developments, often starting from approximately R6 million, depending on the project’s scale and viability.
Is there a required developer contribution or equity?
Yes, developers are typically required to have their own contribution or equity in the project, which is assessed as part of the overall financial structure and viability.
Why are pre-sales required?
Pre-sales demonstrate market demand for the units being developed and provide a clear exit strategy for the finance, reducing the risk associated with the development funding.
What makes this product "executive?"
This offering is ‘Executive’ due to the significantly larger loan facilities available (up to R100 million), tailored specifically for experienced property developers with strong financials and proven track records undertaking substantial development projects, breaking from the limits of standard development finance.
APPLY FOR PROPERTY DEVELOPER FINANCE
This form applies to the following bridging loan categories:
Property Developer Finance
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