Development and private capital
Construction and development finance, structured across bank, non‑bank and private capital
Ventas arranges the whole capital stack for developers and commercial property owners: site acquisition, senior construction debt, mezzanine and preferred equity, residual stock, and refinancing an existing package off a fresh valuation. $2m to $50m+. Indicative terms in 24 to 48 hours.
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Tell us the project and the layer you need. We come back with indicative terms in 24 to 48 hours. No obligation.
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Why developers use a broker for the stack
One deal, every layer of the capital stack
Banks are still the cheapest senior debt on a development, but they want qualifying presales covering the facility and they keep loan-to-cost low, typically 55 to 65%. If the project fits that box, a bank should fund it. Many good projects do not fit that box on the day the developer needs to start.
Non-bank and private credit go higher on loan-to-cost, typically 65 to 80%, with fewer presales or none, and they price for it. Mezzanine and preferred equity sit above the senior debt and take the stack further. Each layer has its own lenders, its own pricing and its own paperwork, and the wrong lender for a layer costs real money over an 18 to 24 month build.
The job is matching each layer to the lender that prices it best, then getting to a term sheet fast so the project keeps moving. That is what Ventas does. Buying a commercial property to hold instead? See commercial property finance. Borrowing against property you already own for the business? See property-backed business lending. Or send us the deal and we will tell you which layers it needs.
What we fund
From the land purchase to the last unsold apartment. Business-purpose lending, $2m to $50m+.
Site acquisition and land bank
Raw land and DA-approved sites. Interest-only holding facilities while you work through approvals or wait for the market.
Senior construction debt
Residential, townhouse, mixed-use, industrial, childcare and medical. Bank, non-bank or private, matched to the presale position.
Mezzanine and preferred equity
The gap above the senior debt, so less of your own equity is tied up in one project and the next site can start sooner.
Residual stock loans
Release equity from completed but unsold stock. Repay the construction lender, sell down at a sensible pace and move on.
Refinance and equity release
Re-gear the whole package off a fresh bank valuation. First and second mortgages, with the equity released for the next stage.
Bridging and second mortgages
Short-term, business-purpose funding to settle a site, cover a shortfall or hold a position until the main facility lands.
Indicative market bands, September 2026
Where each layer of the stack typically sits
Typical Australian ranges. Indicative only and subject to lender assessment of the project, the sponsor and the security.
| Layer | Loan to cost or value | Presales | Typical cost |
|---|---|---|---|
| Senior bankCheapest money, tightest box | 55 to 65%of cost (LTC) |
Typically 100% debt cover in qualifying presales | Single-digit ratesplus establishment and line fees |
| Senior non-bankHigher LTC, presale-light | 65 to 75%of cost (LTC) |
Presale-light, often 30 to 50% debt cover or less | 9 to 13% p.a.plus 1 to 2% establishment |
| Private creditSpeed and certainty, priced for it | 70 to 80%of cost (LTC) |
No presales with a strong sponsor and exit | 11 to 16% p.a.plus 1.5 to 3% establishment |
| MezzanineSecond mortgage above the senior | To 85 to 90%of cost, combined |
Follows the senior lender's presale position | 14 to 22% p.a.plus 2 to 3% establishment |
| Preferred equityAbove mezz, ranks ahead of your equity | To 90 to 95%of cost, combined |
Sponsor track record matters more than presales | 16 to 25% target returnoften with a profit share |
| Residual stockCompleted, unsold stock | 60 to 70%of value (LVR) |
Not required. Sell-down covenants instead | 9 to 12% p.a.6 to 24 month terms |
| Land bankRaw land or DA-approved site | 50 to 70%of value (LVR) |
None. 50 to 65% raw, 60 to 70% with DA | 9 to 14% p.a.interest-only holding facility |
Bands reflect published Australian non-bank and private lender guides as at September 2026. LTC is loan to total development cost. LVR is loan to value. Every project is assessed on its own numbers, and the rate you are offered can sit outside these ranges. Ventas does not operate a fixed lender panel for development finance; each layer goes to the lenders active in that space at the time.
Why Ventas for development
We price every layer, not just the senior debt
Most brokers place the senior facility and leave the developer to find the rest. We price the senior, the mezzanine and the preferred equity together, so the blended cost of the whole stack is what gets negotiated.
Non-bank and private relationships
For presale-light and time-critical deals, the bank is often not the answer. We work directly with the non-bank and private credit lenders that fund at 65 to 80% of cost and can settle inside a few weeks.
A structured deal memo inside 24 hours
Lenders respond to a clean feasibility, a clear security position and a credible exit. We build that memo and put it in front of lenders inside 24 hours, so you get a real term sheet, not a maybe.
Currently arranging a $29m construction package
First and second mortgages refinanced against bank valuations to release the equity the developer needs for the next stage. Same site, same sponsor, a stack that now works.
Free interest estimator
Indicative interest cost on a construction facility
Interest is typically capitalised into the facility and paid at completion or as stock settles. Estimate only and not an offer of finance. Assumes the facility is fully drawn from day one; progressive drawdowns lower the real figure. Excludes establishment, line and exit fees. Get indicative terms for real numbers.
Get my real numbersDevelopment finance, Australia-wide
We arrange construction and development funding in every capital city and the major regional centres. Wherever the site is, we can help.
Common questions
Development finance, explained
How much can I borrow for a construction loan?
It depends on the lender type. Banks typically fund 55 to 65% of total development cost. Non-bank senior lenders typically go to 65 to 75%, and private credit to 70 to 80%. Mezzanine or preferred equity can take the combined stack to 85 to 95% of cost. The rest is your equity, which can include the land at valuation. We arrange deals from $2m to $50m+.
Do I need presales?
For a bank, usually yes. Most banks want qualifying presales covering around 100% of the debt before construction starts. Non-bank lenders are presale-light, often accepting 30 to 50% debt cover or less, and private credit lenders will fund with no presales where the sponsor, the feasibility and the exit are strong. You pay more for that flexibility, and often it is worth it to start on time.
What is the difference between mezzanine and preferred equity?
Mezzanine is debt. It sits behind the senior lender, usually secured by a second mortgage or caveat, and pays a fixed coupon, typically 14 to 22% p.a. Preferred equity is equity. It sits behind all the debt but ahead of your own equity, with a target return of typically 16 to 25%, sometimes with a profit share. Senior lenders often prefer pref equity because it does not add another mortgage.
Can you refinance an existing construction facility mid-build?
Yes, and it is one of the most common jobs we do. A fresh bank valuation on the partly built project often shows more equity than the original facility assumed. We re-gear the first and second mortgages against that valuation, repay the outgoing lender and release the difference for the next stage. Expect a valuation, a QS report and typically 4 to 8 weeks to settle.
What does private construction finance cost?
Private senior construction debt typically prices at 11 to 16% p.a. plus an establishment fee of 1.5 to 3%, with interest usually capitalised into the facility rather than paid monthly. Non-bank senior sits lower, typically 9 to 13% p.a. Line fees, valuation, QS and legal costs are on top. Use the estimator above for an indicative interest figure over your term.
How fast can I get a term sheet?
Indicative terms typically come back in 24 to 48 hours once we have the feasibility, the site details and the sponsor position. A formal term sheet from a non-bank or private lender typically follows within a week, subject to valuation. Banks take longer. Settlement on a private construction facility typically runs 3 to 6 weeks from term sheet.