With over 20 Years industry experience, Hedge Finance Group provides expertise and variety to developers in search of construction funding.
Hedge Finance Group provides a thorough understanding of lending requirements in varying market conditions.
On this basis, our access to Major, 2nd Tier and Private financiers provides developers with suitable solutions based on individual and project requirements. Hedge Finance Group can assist you with any project from a single residential build to a substantial multi-unit high rise complex. We also specialise in Commercial, Retail and Industrial Construction Projects all over Australia.
The range of Construction based products available includes:
- Land-bank / Site Acquisitions finance with a variety of payment options;
- Construction finance drawn on a progressive basis with funding provided as a percentage of total development costs including
Land, Professional Fees, Council/Govt Costs, Construction Costs, Contingency, Establishment/Purchase Costs or as a percentage of the end Value of the Project;
- Structured Finance options to increase borrowing leverage and improve return on equity; and
- Residual Stock Loans to refinance construction debt upon finalisation of project so as to release further equity or extend the selling period of the project.
When considering development funding, lenders vary in their requirements of the following items:
- Is the project feasible?
- Is the project well located and does the design suit the local area
- The client’s experience and asset position?
- The builder’s capacity and capability to complete the project?
- What is the loan-to-value ratio on both a total cost basis and gross realisation?
- What percentage of pre-sales do I require to satisfy the lenders debt cover ratio?
- What is the exit strategey for residual debt
Hedge Finance Group can assist you co-ordinate and Structure your finance proposal to provide the greatest opportunity for success.
Hedge Finance Group also provide expertise in Structured Finance solutions for Construction Projects.
Our access to 2nd Mortgage Lenders and Investors provides developers with additional leverage and preservation of equity for greater return. A well planned mezzanine facility produces an increased return to the developer and allows them to preserve equity.