Land subdivision finance for property developers

Ardent Capital Group brings the same method to every client: execution and strategy, clear advice for smart lending, and long-term growth. That means the right lender, structure and timing, straight advice so you borrow with confidence, and today's deal built toward where you want to be tomorrow. On a subdivision the release pricing is where we spend our time. Set it well and your early lot settlements fund the later stages. Set it badly and stage two waits on stage one clearing in full, which is a timing problem no amount of margin fixes.

It is funding for the civil works that turn one title into several. It covers earthworks, roads, drainage, service connections, survey and the authority charges that go with them, and it runs through to registration of the plan of subdivision. The facility reduces as each registered lot settles.

It is sized against the gross realisable value of the finished lots, net of GST, and against the total cost to deliver them. Lenders write to a share of each and lend the lesser of the two. Major banks reach up to 65% of gross realisable value and non-bank lenders up to 70%, against up to 80% and 85% of total development cost respectively.

Because until the plan of subdivision registers there are no separate titles, so there is nothing to sell and nothing individual for a lender to discharge. Everything in the facility, the term, the release schedule and the interest treatment, is built around the registration date. Delays to registration are the most common reason a subdivision facility needs extending.

A release price is set for each lot at the start. When a lot settles, that amount is paid to the lender and the title is discharged. Release prices are normally set above the pro rata share of the debt, so the facility pays down faster than the lots sell and the lender position improves as the estate empties.

That is the point of staging, and it is what a well structured release schedule delivers. Each stage registers on its own plan and produces sellable titles, and those settlements reduce the debt before the next stage is committed. It lowers the peak debt across the project and it reduces what you have to contribute up front.

It depends on the size and the lender. Larger staged estates going to a bank commonly need evidence that lots will sell, whether that is deposits taken or contracts signed. Small subdivisions on the non-bank panel are frequently funded without presales, assessed on the land value and the cost to complete instead.

Yes, and they should be in the facility from the outset. Headworks charges, contributions under section 7.11 or its state equivalent, and augmentation of water, sewer and power can rival the civil contract in size, and they fall due on the authority timetable. We make sure the quantity surveyor captures them so the limit covers them.

No. Two to five lot subdivisions are among the most common files we place. They generally sit below the size a major bank is interested in, which means the non-bank panel does the work, and that panel is active and competitive at this end of the market.

A superlot is a large parcel bought in one line, usually already zoned and sometimes partly serviced, with the intention of subdividing it. Englobo value is what a single buyer pays for that whole parcel, and it sits below the sum of the individual lots once they are created. The margin in the project is that spread.

Yes, and it is a common file. Wet weather, ground conditions and authority delays push civil programmes out, and a facility set against the original timetable can run short before the plan registers. We refinance the existing lender and fund the works still outstanding, with the term reset against a realistic registration date.

Once the plan registers those lots are completed, titled stock, so they can move onto a residual stock facility. That is generally a better structure than extending a works facility, because the risk has changed from delivering civil works to selling finished titles.

Yes. Serviced industrial and commercial lot creation is funded on the same basis, with the assessment turning on the depth of demand for serviced land in that area. Buyers are frequently owner occupiers building their own premises, and presold lots to those buyers strengthen the file considerably.

The subdivision approval, the plan of subdivision, the civil contract or tender, a quantity surveyor report where one exists, the authority requirements and charges, your feasibility with the lot pricing, and details of your development experience. We can give you an indicative position from the approval and the feasibility alone.

Most of the time, no. Where a project requires significant preparation due to its complexity, a small mandate fee may apply, and we will always be upfront about this before any work begins.

Although we are based in Sydney, we service clients across all major Australian cities, including Melbourne, Perth, Brisbane, the Gold Coast, Adelaide, Canberra and Hobart, along with their surrounding regional areas. Wherever your site is located, we can arrange your finance.

Although our main speciality is property loans for business owners, we also assist with asset finance and working capital. On asset finance, that covers the plant a civil and development business runs, from excavators and graders to compaction equipment, site utilities and work vehicles. On working capital, we arrange business overdrafts, lines of credit and cash-flow funding to carry a site through the works programme, to cover rates and holding costs, and to pay consultants and surveyors.

Yes. That is our core ethos, helping you understand the right strategy, structure and clear advice from the very first conversation. Our main borrower profiles are developers and commercial property owners seeking finance from $50,000 upwards, and a small lot split is one of the most common first projects, so it is well within our wheelhouse. We will walk you through what the civil works will genuinely cost, how release pricing works and what the registration timetable really looks like, before you commit to anything.

No. Arranging finance and advising on financial products are two different disciplines, and we do the first. What we bring is the credit analysis lenders require, the structuring of the facility, and the strategy for putting your application in front of lenders whose appetite matches it.

Because we act as a credit representative under an Australian Credit Licence, we do not give financial product, superannuation, taxation or legal advice, and nothing we provide should be taken as such. Where your circumstances need that input, we are happy to work with your accountant, financial adviser and solicitor to understand the full picture before anything is submitted.

The information on this page is general in nature and does not take account of your objectives, financial situation or needs.