Development Finance
Strategic Capital Solutions for Property Developers
We provide access to multiple and diverse pools of internal and external capital to accommodate funding requirements across the entire capital stack. Our competitive advantage lies in our industry knowledge, capability and flexibility to provide a single source of capital to meet the unique requirements of each project.
Whether you are acquiring a development site, funding approvals, commencing construction, expanding an existing project or seeking project recapitalisation, we structure funding solutions designed to meet the specific requirements of each transaction.
We understand that no two developments are the same. Every project has its own opportunities, challenges, risk profile and commercial objectives. That is why we focus on delivering customised capital solutions rather than applying rigid lending criteria or standardised funding structures.
From land acquisition through construction and project completion, we partner with developers to create funding structures that support successful project delivery.
Development Finance Expertise
Successful developments require more than capital.
They require a funding partner with a deep understanding of feasibility analysis, project delivery, risk management, market conditions and capital structuring.
Global Capital Commercial brings extensive experience across a broad range of property sectors, enabling us to structure funding solutions aligned with the specific requirements of each development.
We Regularly assis with:
- Residential developments
- Apartment projects
- Townhouse developments
- Mixed-use projects
- Commercial office developments
- Industrial developments
- Retail projects
- Childcare centres
- Healthcare and medical facilities
- Land subdivision projects
- Build-to-rent developments
- Tourism and hospitality assets
No two projects are the same. As a result, every funding solution is assessed and structured individually to reflect the project’s unique requirements, objectives and delivery strategy.
Capital Solutions Across the Entire Capital Stack
Property developments frequently require funding across multiple layers of capital.
Our expertise lies in structuring integrated capital solutions that provide developers with access to funding where and when it is needed, while maintaining alignment with project objectives.
Construction Finance – Senior Debt
Funding solutions designed to support site acquisition, development and construction activities.
Stretched Senior Construction Finance
Higher leverage facilities designed to improve capital efficiency and support project feasibility.
Mezzanine Finance
Additional capital that bridges the funding gap between senior debt and developer equity.
Preferred Equity
Flexible equity structures designed to strengthen project funding and support growth opportunities.
Joint Venture Capital
Strategic capital partnerships that provide additional equity and support project delivery.
Residual Stock & Investment Facilities
Funding solutions designed to support completed developments, retained assets and capital recycling strategies.
Development Finance Solutions
Development opportunities often begin with securing the right site.
Global Capital Commercial structures funding solutions for:
Land Acquisition & Land Bank Finance
Development opportunities often begin with securing the right site. Global Capital Commercial structures funding solutions for:
- Site acquisitions
- Strategic long term land banking opportunities
- Development approvals
- Townhouse developments
- Planning and feasibility costs
- Rezoning opportunities
- Land Subdivision Loans for land subdivision projects
- Value-add development opportunities
Our objective is to provide funding flexibility while preserving future development potential.
Construction Finance
Construction funding is a critical component of project delivery. The right funding structure can improve project efficiency, support cash flow management and provide certainty throughout the construction programme.
We structure construction funding solutions for:
- Apartment developments
- Residential communities, such as large scale house and land packages
- Townhouse projects
- Industrial facilities
- Commercial buildings
- Retail developments
- Childcare centres
- Medical assets
- Mixed-use developments
- Hospitals
- Hotels
- Data Centers
Our focus is on ensuring capital structures align with construction timelines, drawdown requirements and project delivery objectives.
Structured Development Finance
Many projects require funding solutions that extend beyond traditional financing models.
We assist with projects involving:
- Multiple capital providers
- Staged developments
- Large-scale projects
- Complex ownership structures
- Non-standard development scenarios
- Specialised asset classes
Our experience in capital structuring enables us to coordinate funding arrangements that support both project execution and commercial objectives.
Mezzanine Finance & Equity & Joint Venture Capital
Mezzanine and equity funding can play an important role in enhancing project feasibility, improving leverage and supporting growth opportunities.
We assist clients with:
- Mezzanine funding facilities
- Preferred equity investments
- Joint venture capital
- Strategic investment partnerships
- Project-specific equity solutions
- Growth and expansion capital
These funding structures can provide developers with increased flexibility while supporting the successful delivery of development projects.
Capital Solutions Throughout the Development Lifecycle
Our funding capabilities extend across every stage of the development process.
Site Acquisition
Funding solutions for the acquisition of strategic development opportunities.
Planning & Approvals
Capital to support planning, approvals, feasibility and pre-development activities.
Construction
Funding structured to support project delivery throughout the construction phase.
Completion & Stabilisation
Solutions designed to support completed projects, asset retention and refinancing opportunities.
Residual Stock & Portfolio Optimisation
Funding strategies that provide flexibility following project completion and support long-term portfolio objectives.
Our Approach
Understanding the Opportunity
Every transaction begins with a detailed review of the project, development strategy and commercial objectives.
Structuring the Capital Solution
We assess funding requirements across the entire capital stack and develop a structure aligned with project needs.
Execution
Our team manages the funding process through assessment, structuring, negotiation and settlement.
Ongoing Support
We remain actively engaged throughout the project lifecycle, ensuring funding solutions continue to support project objectives as circumstances evolve.
Why Property Developers Choose Global Capital Commercial
Development Finance Experience
We understand the commercial realities of property development and the funding requirements necessary to support successful project outcomes.
Capital Structuring Expertise
Our experience across debt and equity funding allows us to structure solutions tailored to each project’s requirements.
Flexible Funding Solutions
We focus on achieving outcomes rather than applying rigid funding criteria.
Access to Diverse Capital Sources
Our ability to source capital across multiple funding channels allows us to structure solutions that align with a broad range of project requirements.
Commercial Perspective
We approach each transaction with a strong understanding of risk, feasibility, capital efficiency and project delivery.
Execution Focused
We recognise that timing is critical in property development and focus on delivering funding solutions efficiently and effectively.
Long-Term Relationships
Many of our clients return to us across multiple projects because of our ability to provide practical advice, dependable execution and consistent outcomes.
What Is Development Finance?
Development finance is a specialised form of funding designed to facilitate the acquisition, development and construction of property projects.
Unlike traditional investment property finance, development finance is assessed based on a combination of factors including site value, project feasibility, development costs, construction risk, projected gross realisation value (GRV), delivery timeframe and sponsor capability.
Development finance can be utilised across a broad range of projects including residential developments, apartment buildings, land subdivisions, industrial estates, commercial developments, mixed-use precincts and specialised asset classes.
A well-structured development finance solution not only provides the capital required to deliver a project but also improves capital efficiency, enhances project feasibility and supports long-term investment objectives.
Understanding Development Finance Metrics
A successful development finance application requires a thorough understanding of the key metrics used to assess project viability and funding capacity.
Gross Realisation Value (GRV)
Gross Realisation Value represents the total estimated value of a completed project upon completion and sale.
GRV is a fundamental metric used in development finance as it provides insight into the end value that supports the funding structure.
Lenders and capital providers assess GRV alongside project costs, market demand and feasibility assumptions when determining funding capacity.
GRV will typically be EX GST and using the margin scheme for corporate borrowers.
Net Realisable Vaue (NRV)
Net Realisable Value for lending purposes is an important metrix as it is essentiall Gross Realisation Value less GST and selling costs to give the actual net number that the developer is projected to receive upon successfully completing the project
Total Development Costs (TDC)
Total Development Cost refers to the complete cost of delivering a development project.
This may include:
- Land acquisition costs
- Consultant fees
- Development application costs
- Construction costs
- Authority charges
- Marketing expenses
- Interest and holding costs
- Contingencies
Understanding TDC is essential in determining project feasibility and funding requirements.
Loan to Value Ratio (LVR)
Loan to Value Ratio measures the level of debt relative to the value of the underlying security.
Higher LVR structures may increase leverage and potentially improve returns on equity, although they can also introduce additional project risk.
Balancing leverage, equity contribution and project feasibility is a critical component of successful capital structuring.
Typically when we reference LVR it is based againgst tne projecr Net Realiseable Value.
Loan to Cost Ratio (LTC)
Loan to Cost Ratio measures debt against the total development cost of the project.
LTC is frequently used to assess funding requirements and determine the level of equity contribution required from the developer.
An appropriately structured LTC can improve project efficiency while maintaining acceptable risk parameters.
Why Capital Structure Matters
One of the most common challenges developers face is selecting the right funding structure rather than simply obtaining finance.
An inefficient capital structure can:
- Increase equity requirements
- Reduce project returns
- Restrict flexibility
- Increase refinancing risk
- Delay project delivery
A well-designed capital structure can:
- Improve returns on equity
- Enhance project feasibility
- Increase funding certainty
- Improve liquidity
- Improve liquidity
For this reason, capital structuring should form part of the development strategy from the earliest stages of project planning.
Development Finance Trends
The development finance market continues to evolve as developers seek greater flexibility, certainty and access to diverse sources of capital.
Increasing construction costs, evolving planning requirements and changing market conditions have created a greater need for customised funding solutions that align with the specific requirements of individual projects.
As a result, developers are increasingly exploring funding structures that combine debt, mezzanine finance and equity capital to support project delivery and maximise capital efficiency.
Frequently Asked Questions
What is development finance?
Development finance is a specialised form of funding used to support property development projects from acquisition and approvals through construction and completion.
What types of projects can be funded?
Funding can be structured for residential, commercial, industrial, mixed-use, retail, subdivision, healthcare, childcare and specialised development projects.
Can development finance be structured across debt and equity?
Yes. Funding solutions may include senior debt, stretched senior funding, mezzanine finance, preferred equity and joint venture capital depending on project requirements.
How is development finance assessed?
Funding is generally assessed based on factors including project feasibility, development costs, project timeline, forecast end value, delivery strategy and project risk and sponsor capability.
What is the difference between construction finance and development finance?
Construction finance typically funds the building phase of a project, while development finance may encompass acquisition, approvals, construction, project completion and exit strategies.
Can funding be arranged for complex projects?
Yes. We regularly assist with projects involving multiple funding layers, complex ownership structures, staged developments and specialised asset classes.
Can first-time developers obtain development finance?
Yes. Funding options may be available depending on project quality, project team capability, asset type and overall development strategy.
Discuss Your Next Development
Property development requires experience, planning and access to the right capital.
Global Capital Commercial works with developers to structure funding solutions that support acquisition, construction, growth and long-term success.
Contact our team to discuss your next project and explore a capital solution tailored to your development objectives.
Development Finance | Case Studies
What our clients say
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“After completing my degree in Property Valuation and Investment, I have been involved in property investment and development finance since 1995, when I was State Manager for Capital Finance for the Bank of Scotland. During the 2000’s I ran a global mezz / equity fund with assets under management peaking in 2009 at over AUD$1B. I finished my career in finance as head of property finance for one of the big 4 Australian Banks.
I met Bill Salouris and his team at Global Capital Commercial during this period and have consistently turned to the team for advice, recommendations and financial solutions for a range of property ventures across most property sectors including Residential, Industrial, Retail and Land Subdivision.
The team at Global Capital Commercial offers an extremely wide range of financial products and rarely fail to provide the right solution, whether that be a standard investment loan or a complicated structured development solution. The best part of the service, in my opinion, is that in the unlikely event they cannot find a solution – they will say so quickly – with an explanation, as to why.
I believe, they know, in this industry – we don’t have time to waste!
Global Capital Commercial has always had the time to listen, and they understand the often frustrating times, a property developer experiences.
My company has completed property developments in 4 states of Australia, and 5 countries. I have met an amazing array of property finance people during that time, but always come back to Global Capital Commercial for advice, assistance and financial solutions.
I highly recommend Bill, and his team, to anyone seeking finance from a professional and dedicated team. In an industry littered with part time inexperienced operators, Global Capital Commercial is a standout player!
– Michael Knight, Managing Director, Knight Jones Australia.
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If you have questions or want to know more about how GCC can help secure development finance that works for you, contact us today.
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