Trusted solutions from property finance experts.
GM Capital Solutions provides major bank and non-bank funding solutions with direct access to alternate (non-bank) funders nationally and offshore.
Development & Construction Finance
GM Capital Solutions are a trusted provider of funding solutions for developments from acquiring land (with or without DA) through construction to practical completion of residential, commercial and industrial projects.
GM Capital Solutions are a trusted provider of funding solutions for developments of residential, commercial and industrial projects.
Land Bank Funding
GM Capital Solutions has a proven track record of arranging finance in the form “Land Bank Loans” to assist with the settlement of land at various stages of development and DA approvals.
During the Land Bank Loan term, the borrower/property developer is typically focused on de-risking the project by finalising all necessary remaining design, zoning and development/construction consents and approvals, marketing and obtaining presales, procuring a construction contract and obtaining construction finance approvals.
The repayment of a Land Bank loan is typically achieved through the initial settlement of the construction finance. In many cases we can also arranged the construction finance facility to settle a land bank loan, providing an end to end solution.
Land Bank loan interest rates, LVR’s, terms, and serviceability requirements can all be tailored to meet the individual requirements of the borrower and the level of risk
Benefits of Land Bank Funding
- Funding can be provided without a DA
- Pre-sales aren’t required in most cases
- Gives the developer time to get ready for the construction phase (e.g. obtaining DA’s, building approvals and pre-sales if necessary)
Mezzanine finance/ Preferential equity
Mezzanine funding (or second mortgage funding), is ideal for developers who want to preserve their own equity and don’t want to bring in a equity partners.
A mezzanine loan is a hybrid of debt and equity and is subordinated to any senior lender. Given its subordinated or second ranking position the mezzanine lender usually receives a higher rate of interest for a higher level of risk. This allows for sufficient capital to fund opportunity purchasers of land or key staff to build the development pipeline and operations capacity to deliver on its commitments.
Most successful Property Developers use mezzanine finance once their projects have de-risked with DA and pre-sales achieved. They do this to settle the land, finalise design and approvals, fund sales and marketing costs to achieve pre-sales. This is the most sustainable use of mezzanine finance.
Benefits of Mezzanine/Preferential Equity Finance
- Bring your project to market sooner
- Lower the amount of pre-sales required
- Precious cash is free to drive the rest of the developer’s pipeline
- Potentially decrease portfolio risk by increasing diversification and increasing your liquidity
Our extensive relationships with high net worth individuals, family offices and public and private companies, listed and unlisted real estate investment trusts both local and international allows us to find the right partner for you.
By understanding your goals as a developer, the fundamentals of your projects, track record and experience, GM Capital Solutions can source a joint venture partner who is aligned to your objectives.
A JV partner can satisfy the following:
- Introduction of complimentary skill sets contributing to a successful outcome
- Sharing the risks associated with the project
- Experienced developers seeking a financial partner to bring equity / cash to the project
- Landowners seeking an experienced partner with the development expertise and capacity to help deliver on the project.
Type of Developments
- Town Houses
- Land Subdivision
- House and Land packages
- Office buildings
- Shopping Centres
- Childcare Centres
- Retirement and Aged Care
- Petrol Station
- Factory units