Land bank finance supports developers in strategically positioning their projects for maximum future profitability while navigating planning and market cycles.
Development Site finance enables you to secure your next development site prior to construction. Generally, you can obtain loans up to two years in advance to enable you to secure a DA approval, prerequisite presales for your construction loan or nominate a builder and complete the Construction Certificate.
Typical loan parameters
Typical loan parameters for Development Site Finance Loans.
Loan amounts from $1,000,000 – >$50,000,000
Facility limits:
Banks – up to 50%
Non Banks – typically 65% but up to 75%
Pricing:
Banks from 4%
Non Banks from 6%
Locations: all metropolitan locations and major regional and sub-regional locations
DA approved or unzoned land
Common Types of Development Site (Land Bank) Finance:
Acquisition Finance: Specifically designed for purchasing land with potential for future development, often based on location and zoning potential.
Land Bank Loans: Short-term loans for holding undeveloped land, allowing developers to secure prime sites while planning approvals are obtained.
Equity-Backed Loans: Secured against the developer’s equity in the project or other assets, minimizing upfront capital requirements.
Interest-Only Loans: Ideal for land banking, with reduced repayments focused on interest only until development begins.
Mezzanine Finance: Provides additional funding beyond primary loans, supporting the acquisition or holding of premium land parcels.
Joint Venture Finance: Partnerships between developers and financiers to acquire and hold land, sharing risk and future profits.
Bridging Loans: Short-term finance for land purchases, offering quick access to funds while developers secure long-term financing or approvals.