How Private and Development Finance Works for Gold Coast and Queensland Projects

The Gold Coast and wider South East Queensland have been among the most active property development markets in Australia. Population growth, infill density, lifestyle demand and the infrastructure pipeline ahead of the Brisbane 2032 Olympic and Paralympic Games all contribute to a steady flow of townhouse, apartment, subdivision and mixed use projects.

Activity does not make a project fundable on its own. Lenders fund projects that are well prepared, sensibly leveraged and backed by a credible exit. This guide, prepared by Amar Alamar of Blended Ventures, explains how private and development finance works for Gold Coast and Queensland projects, what lenders assess, and how to prepare a transaction so it can be placed with the right funder.

The funding landscape in Queensland

Queensland borrowers can access several broad sources of property finance.

Banks remain an important source of construction and investment lending. They typically offer the lowest pricing for projects that fit their policy, but tend to require meaningful presales, strong borrower experience and conservative leverage.

Non-bank lenders and private credit funds have become a major part of Australian property finance, particularly in construction and development lending. They assess transactions more directly on the asset, the feasibility and the exit, and can accommodate lighter presales, shorter decision timeframes and more complex structures.

Private capital partners, including mezzanine providers and equity investors, can sit behind senior debt where a project requires more capital than a first mortgage lender will provide.

The right source depends on the project rather than the postcode. The article Two Credit Markets Under One Cash Rate explains why credit conditions can differ sharply between borrower types at the same time, and the Private Lending Market Pulse tracks recent activity in the private lending market.

Stages of a development and how each is funded

Development finance is best understood as a sequence of stages, each with its own risks and its own funding options.

Site acquisition. Buying a site before planning approval is the riskiest stage for a lender, because value depends on an approval that has not yet been granted. Land and site loans are usually more conservatively leveraged and often provided by private lenders on shorter terms.

Pre construction. Once approval is in place, the site can often be refinanced at a higher value while design, tendering and presales are completed. Some borrowers use this stage to release equity towards the construction contribution.

Construction. Construction facilities are drawn progressively against certified works, typically monitored by a quantity surveyor appointed for the lender. Interest is commonly capitalised, and the facility is sized against the total development cost and the gross realisation value of the finished product.

Completion and sell down. When a project completes with unsold stock, a residual stock facility can repay the construction lender and give the developer time to sell in an orderly way rather than discounting into a soft market.

Many projects also need bridging finance at one or more points, for example to settle a site before an existing asset sells, or to cover a short gap between facilities.

How lenders size and assess a development

Lenders commonly measure leverage in two ways. Loan to cost compares the facility with the total development cost, including land, construction, fees, contingency and capitalised interest. Loan to value compares the facility with the expected end value of the completed project. The limit offered is usually the lower of the two measures, and the gap between the facility and total cost must be met by the developer's equity or by subordinated capital.

Beyond the numbers, lenders assess:

The feasibility, including margin, contingency and the assumptions behind sale prices and costs.

The builder, the building contract and the cost to complete.

Planning approval, conditions and any infrastructure charges.

The borrower's experience and the strength of the project team.

Presales, where required, and the depth of the buyer market for the product.

The exit, whether through settlement of sales, refinance or a residual stock facility.

Higher leverage or lighter presales generally mean higher pricing and tighter terms. Those trade-offs should be modelled across the full program rather than judged on headline rate.

Private and bridging finance outside development

Not every Queensland transaction is a development. Private and bridging finance is also used for commercial property acquisitions with tight settlement dates, equity release against existing property for business purposes, refinancing facilities that are approaching expiry, and short term funding while an asset is sold.

In each case the questions are similar: what is the security, what is the purpose, how long is the money needed, and how will it be repaid. Where existing debt is already in place, a second ranking facility may be an option. The guide Commercial Second Mortgages in Australia explains how those facilities work and what to consider.

Market conditions in South East Queensland

Lending appetite moves with the market. Construction costs, interest rates, buyer demand and valuation trends all influence how lenders view a project. The article Prices Are Softening. Supply Is Still Tight. discusses how softer price sentiment sits alongside persistent supply constraints, while Prime Is Filling. Secondary Is the Question. looks at how quality and grade affect commercial property.

For developers, the practical point is that the same project can attract different terms from one quarter to the next. Building flexibility into timing and planning a refinance path early are both prudent.

Preparing a project for funding

A well prepared submission is the single most effective way to improve the outcome of a funding process. A complete package typically includes:

A project summary covering the site, the proposal, the program and the funding requirement.

A feasibility with sources of cost estimates and sales assumptions.

Planning approval documents and key conditions.

The building contract or a detailed cost plan, with quantity surveyor input where available.

A valuation, or the information a valuer will need.

Details of the borrower entity, guarantors, equity contribution and experience.

The exit strategy, supported by evidence such as presales or comparable sales.

Inconsistencies between documents are a common cause of delay. Reviewing the package as a whole before it reaches a lender saves time for everyone.

The role of Blended Ventures

Blended Ventures is a finance brokering consultancy founded by Amar Alamar and based on the Gold Coast and in Brisbane. It works with developers, investors and business owners across Queensland and Australia, connecting them with private credit funds, non-bank lenders, banks and capital partners. Each engagement starts with the asset, the business, the timing and the exit, and clients deal with one point of contact from first conversation to settlement.

Blended Ventures focuses on business, commercial and investment purpose finance. More information is available at blendedventures.com.au.

Important information

This article is general information only. It is not financial, credit, legal or tax advice and does not take into account any person's objectives, financial situation or needs. Blended Ventures is a finance broker, not a lender. Any finance is subject to the relevant lender's assessment, credit criteria, security valuation and approval. Readers should obtain independent professional advice before acting.