No Pre-Sale Construction Finance & Construction Loans
Global Capital provides access to multiple and diverse pools of internal and external capital to accommodate funding requirements across the entire capital stack
Global Capital provides access to multiple and diverse pools of internal and external capital to accommodate funding requirements across the entire capital stack
We deliver tailored construction finance solutions for developers seeking flexible funding structures, including projects without pre-sales, complex developments and opportunities that may fall outside traditional lending criteria.
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.
Flexible Construction Finance Solutions
Securing construction finance can be challenging when projects do not align with traditional lending requirements.
Whether a development has limited pre-sales, requires a flexible assessment process or involves a complex capital structure, access to the right funding partner can be critical to project success.
Global Capital provides access to construction loans and construction property finance solutions through a combination of internal capital sources, private capital providers and institutional funding partners. This enables us to structure funding solutions aligned with the specific requirements of each development.
No Pre-Sale Construction Finance
Many lenders require significant pre-sale commitments before approving a construction facility.
For experienced developers and well-positioned projects, these requirements can create unnecessary constraints and delays.
Our no pre-sale construction finance solutions are designed to provide funding flexibility where traditional requirements may not be suitable. By leveraging diverse sources of capital across the capital stack, we help developers access funding solutions tailored to their project’s individual circumstances.
Construction Loans for Complex Projects
We provide construction loans for a broad range of development finance opportunities, including:
- Residential developments
- Townhouse projects
- Apartment developments
- Mixed-use projects
- Commercial developments
- Industrial developments
- Land subdivision projects
- Boutique developments
- Partially completed projects
Our experience across construction property finance enables us to structure funding solutions that support projects from acquisition through to completion.
Access Capital Across the Entire Capital Stack
Successful developments often require more than a traditional senior debt facility.
Global Capital provides access to funding solutions throughout the capital stack, including:
- Development Finance
- Stretched Senior Facilities
- Construction Finance
- Mezzanine Finance
- Preferred Equity
- Private Capital
- Structured Finance Solutions
This provides developers with greater flexibility when securing construction finance and allows capital structures to be tailored to each project’s specific requirements.
Construction Property Finance Tailored To Your Project
Every development project presents unique opportunities and challenges.
Our team works closely with developers, investors and project sponsors to understand project objectives and structure appropriate construction property finance solutions.
Whether the requirement involves no pre-sale construction loans, additional leverage, alternative security structures or specialised funding requirements, we focus on delivering practical capital solutions designed to support project success.
Why Choose Global Capital?
Diverse Sources of Capital
Access to multiple pools of internal and external capital across senior debt, private capital and structured funding solutions.
Flexible Funding Structures
Tailored construction finance solutions designed around the specific requirements of each project.
Development Finance Expertise
Extensive experience across construction property finance, development funding and complex transactions.
Single Source of Capital
A streamlined approach that provides access to multiple funding solutions through one experienced capital partner.
No Pre-Sale Construction Finance Loan Parameters
Typical loan paramters are:
- Maximum LVR based on GRV: up to 75%
- Maximum LTC (Loan to Cost): up to 85%
- Minimum loan amount: starting from $2m
- Maximum Loan amount: $150m (for higher amounts contat us)
- Property types: Residential, Commercial, Retail, Industrial, mixed use and specialised
Who We Work With
Our construction finance solutions are designed for:
- Property Developers
- Private Developers
- Commercial Developers
- Family Offices
- Property Investors
- Development Companies
- High-Net-Worth Individuals
- Joint Venture Development Groups
Regardless of project size or complexity, our focus is on providing access to the right capital solution for each opportunity.
Our Difference
Unlike traditional lending approaches, Global Capital combines industry expertise, funding capability and flexible access to capital to deliver tailored construction finance solutions.
By providing access to both internal and external capital sources, we are able to accommodate funding requirements that extend beyond conventional lending parameters while delivering certainty and execution throughout the funding process.
Looking For No Pre-Sale Construction Finance?
Speak with our team about your construction finance, construction property finance or no pre-sale construction loan requirement.
We provide access to diverse capital sources and tailored funding solutions designed to meet the unique requirements of every development project.
Contact Global Capital today to discuss your construction funding requirements.
A Viable Option
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“The real advantages of private low doc construction loans, both tangible and intangible, flow from flexible pre-sale requirements. If the borrower does not fit the rigid requirements of a mainstream bank lender, the only real alternative is a private non-bank lender.
If the developer is at the early stages, then low doc private construction finance poses an interesting option, particularly in a rising market. While it is obviously more expensive, there is the very real possibility that it may provide a significantly greater return to the developer; and within a shorter time period. More Profit, less fuss and faster turnaround”
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Overcome Opportunity Costs:
- Interest costs payable during the land bank period while waiting to achieve pre-sales targets
- Holding costs during the land bank period
- Upfront marketing expenses to achieve pre-sales
- Upfront sales commissions to specialist marketers (sometimes as much as 10% upfront!)
- No need to sell stock for a discount to achieve pre-sale hurdles (which will also impact the valuation!!)
- Easier to sell stock at realistic prices once the project has started ‘turning dirt’
- In a rising market delaying sales to the back end could result in a significant increase in ROI. (A 5% increase in GRV could lead to a 50% increase in ROI!)
- Without needing to wait for pre-sale hurdles to be achieved, the developer can commence earlier, complete and sell the project earlier and turn over their equity much faster.
The Benefits:
By utilising GRV-based low doc property development finance, a developer is sometimes able to borrow more money on their project, accordingly limiting the amount of equity they are required to commit.
The main benefit of using a GRV-based, low doc construction loan is that it provides the developer with the option of obtaining construction finance with minimum or no pre-sales. This is particularly significant in markets where the value is growing. Under these circumstances the developer would prefer to sell the units at completion, so they can achieve capital growth on the properties during the building period.
It is important to note that typically banks will not extend development finance until the required pre-sales are in place. This will mean that the property developer will have to hold and pay interest on the land until the required pre-sales are obtained and confirmed as acceptable by the bank, which obviously means extra costs to the developer. GRV-based low doc project finance will allow the developer to start works without pre-sales, and thereby limiting holding costs. Low doc construction finance proves that cheapest is not always the best option for property developers.
Construction Finance | Case Studies
What our clients say
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“I engaged Global Capital to assist my client with obtaining approval for development finance for 8 townhouses as none of the major banks were able to assist.
The client owned the land outright, however needed to finance all costs relating to the construction. They were able to obtain approval consistent with the clients’ requirements (specifically no pre-sales) in a timely and professional manner. The approval was a big relief for the client as this project could release significant equity for them once completed.
Global Capital’s communication throughout my dealings with them were of honesty and sincerity and I would highly recommend the company to anyone if they require assistance in obtaining finance for property development.”
– Damian McCormack, Finance Broker
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For enquiries about pre-sale finance or if you simply want to know more about how GCC can help you or your clients, contact us today.
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