Structured solutions for property finance
Late last year we wrote about our property funding solutions. Over the first four months of 2017 we have seen high levels of funding opportunities in this sector. But there is no doubt the four main banks have reduced their appetite for funding property – particularly for any non-owner occupied investment and development properties. However, Finance New Zealand has a range of structured solutions involving both mainstream bank and specialist property finance companies (non-bank lenders), which have more flexible lending criteria than the banks.
One of our business partners recently assisted a couple of clients with property finance for a range of properties using a mix of bank and specialist financiers.
The first client required three different funding facilities – one was for bare land just reaching title status for which we secured 70% funding, another was a development project that required 35% funding, and the third was a turnkey build project that received 60% funding. The finance for these were provided by two different non-bank lenders.
The second client was wanting to buy bare land for future development, and needed to finance the full amount of the purchase but had been declined funding by its bank. However, we were able to get finance for 60% of the property value from a specialist property funder and then, using another of the client’s commercial properties as equity, were able to borrow the remaining 40% from a mainstream bank.
If you are finding it a challenge to secure property or development finance, talk to your business partner at Finance New Zealand to see how we can find a funding solution for you.