WHITE PAPERS

Successful property development is all about successful debt structuring. How the experienced most professional developers do it.

We do the maths with you. Why it is easier than you thought.

Think Start-Up meets Leveraged Buy Out for development financing.

See Property Deals through the Eyes of the Finance Professionals.

Then take a guided tour through the property development industry and its participants. The professional people who form the institutions, government bodies, councils, consultants, lenders, buyers, borrowers and sellers that make the property development market so dynamic. Why it is literally an entrepreneurs paradise.          Know what to do with state of the art strategies for developers.

Find out about professional property development software. Why the banks prefer it, the valuers use it, and how development feasibility analysis is so important to all developers on every deal.. and non-deal.

Position yourself and your business to take advantage of our changing economy. Survive the new normal for Banks and thrive in the property development Industry and this current elongated Cycle.

Negotiate the semi-octopus clamp and learn how the one-bank trap stops inexperienced developers from purchasing properties for a few years. Understand the cycles within cycles: the property, interest rate and banking cycles and how to avoid a convergence of credit issues.

Developers “all in” funding costs for their property projects are finally falling due to an increase in competition by senior debt lenders and greater access to mezzanine and equity funding providers.
This may not be the case much longer due to the incoming Basel Accords III and IV which have set down a 150% risk-weighting for bank capital to mortgage lending with property development exposures.

An understanding of the current funding market is therefore paramount to procuring the best funding terms which leads to the maximum Return on Equity. Which at the end of the day is what its all about. Obtaining the best financial outcome from your projects.

It is important for property developers to consider the non-traditional funding options that work for them. Exchanging financing options to include mezzanine/preferential equity funding provides the developer with resources to purchase their next site.
Without a healthy and stable pipeline of projects the developer’s business will not grow. Cashflow will be lumpy. It will not be well positioned to profit in the next market downturn - which could very well be imminent. Ask the media experts who say it will be 2 short years before this cycle ends. Then it turns again. As it always does.

This equity swap or "recycle" delivers the security that many developers seek to build a sustainable pipeline of projects. Available capital is applied to multiple projects to take advantage of current strong market conditions. Then there is the Multiplier Effect.

Early consideration of your funding requirements, relevant project and financial documentation and the conditions precedent in the development finance approvals will ensure a smooth transaction when securing traditional and non-traditional project funding.            

A selective marketplace highlights the importance of a relevant and effective funding proposal supported by the correct information - followed up by an experienced and highly skilled Broker to close the deal to get funding according to your specific deal requirements.