Our Services

The range of products available includes:

• Land-bank finance with interest capitalised or paid monthly.
• Site acquisition against valuations uplifted by rezoning/planning approvals.
• Progressively drawn construction finance for developer builders or for developers outsourcing construction and covering budgeted construction, construction contingency, project management, consultants costs and holding costs, interest capitalised during construction and the budget selldown period.
• Structured finance solutions to increase gearing up to as high as 95% of project costs to improve return on equity, release equity to the developer, access higher value projects or provide bridging finance across multiple assets.
• Take-out/recapitalisation of development residual stock to clear construction loans, release equity or provide an extended selling period.

Mezzanine finance and preferred equity are ways to increase a property developer’s borrowing potential, beyond the limitations of traditional construction finance facilities.

Mezzanine finance is a form of subordinated debt, behind senior debt in terms of ranking on any claim on property assets and ahead of equity, generally secured by a second mortgage. This debt fills the funding gap between the property developer’s equity and the amount of the senior facility available. Preferred equity works in a similar way to mezzanine finance, but no second mortgage is placed on the property to be developed.

Capital Stack has considerable experience and a proven track record of arranging private equity & joint venture participation for suitable projects.

We partner with a network of high net worth investors to supply optimal solutions and results for our clients.
Private Equity or a joint venture arrangement is best suited to the following situations:

• A land owner looking to partner with an experienced property developer
• The early stages of the project, time line (such as rezoning or approval)
• Demonstrating development management experience, particularly for larger projects to show the ability to successfully complete the project

Private equity or a JV is particularly useful in situations where the project proponent requires another party’s project development expertise and/or balance sheet position, in order to progress the project to a mutually-profitable outcome.

The team at Capital Stack have helped developers all around Australia make the most of the opportunity of take out finance. As the name implies, it allows for the funding of completed but unsold development stock for up to 12 months to allow the developer time to sell it. It is particularly useful if the developer used private lenders or mezzanine finance and wants to refinance the debt.

Take out facilities offer:

• More time to sell stock
• Higher LVR to allow for recapitalisation to start another project
• Higher LVR to allow for prepaid interest for the term
• Cheaper rate
• An opportunity if the existing lender wants out

The team at Capital Stack have a strong affiliation with Aussie Home Loans, a tried and trusted icon of the Australian consumer mortgage industry which has served homeowners for over 30 years! Having owned and operated a successful Aussie Home Loan franchise in recent years, the team at Capital Stack are considered experts at arranging home and investment loans for off the plan apartments and townhouses. We can manage the home loan process from start to finish and deal with challenges that may crop up along the way. For example, valuation shortfalls, density limits, and serviceability issues.

In addition, for any consumer or investment lending that falls ‘outside of the box’, Capital Stack have host of non-traditional and private lenders on its panel that can act swiftly to problem solve most unique situations.

Having a background in Chartered Accounting, with considerable time spent working within the property industry, our team have the proficiency to manage the following functions typical to most property development businesses:

• Site Acquisition Financial Due Diligence
• Project Feasibility Modelling (Estatemaster)
• Project entity setup
• Procurement & Coordinating of Tax & Legal Advice
• Business Plans
• Human Resources
• Project Information Memorandums
• Structuring, raising, and management of debt & equity
• Accounting System setup and maintenance
• Periodic reporting including monthly financial & stakeholder reporting packs
• Dashboard Reporting
• Bank Liaison and PCG attendance
• On Completion financing and early profit release