A commercial construction loan is a specialised, short-term facility designed to cover the costs of land acquisition and the subsequent build-out of income-producing real estate. Unlike a standard mortgage, these funds are typically released in “progress draws” as construction milestones are met.
Whether you are developing a boutique apartment complex in Brisbane or a large-scale industrial warehouse in Western Sydney, Clopton Capital acts as your dedicated commercial mortgage broker to secure a capital stack that balances senior debt with mezzanine or equity to ensure project completion.
Navigating the Australian construction sector requires high-certainty capital. Our role is to mitigate the “funding gap” and provide developers with:
Progressive Drawdowns: Funds are managed to match your builder’s schedule, ensuring subcontractors are paid on time.
Capital Stack Optimisation: We structure combinations of senior debt and mezzanine financing to stretch your equity further.
Takeout Certainty: We don’t just fund the build; we provide a clear roadmap to transition your construction debt into a long-term commercial mortgage once the asset is stabilised.
Note: Structures vary significantly based on project size, location, and pre-sales/pre-leasing status.
Loan Size: 2,000,000 AUD to 50,000,000+ AUD
Leverage (LTC): Typically up to 70%–80% of Total Cost (LTC).
Loan Term: 18 to 36 months, often with extension options for lease-up.
Pricing Benchmark: Floating rates priced off the BBSW (Bank Bill Swap Rate) plus a risk margin.
Interest Treatment: Interest is commonly capitalised (added to the loan) during the construction phase to preserve developer cash flow.
We provide access to the three primary tiers of the Australian lending market:
Major Australian Banks: Best for developers with significant “pre-sales” and strong balance sheets. These offer the lowest rates but have the strictest “presale” requirements.
Institutional Non-Bank Lenders: These providers often offer higher leverage (LVR/LTC) and may require fewer pre-sales than a traditional bank, allowing for a faster project start.
Private Debt Funds: Ideal for time-sensitive projects or “land banking” where speed and flexibility are the primary requirements.
To provide an accurate term sheet within 24–72 hours, we typically require:
Project Summary: Site address, asset type, and total number of units/sqm.
Feasibility Study: A detailed breakdown of “Total Development Costs” (TDC) and “Gross Realisation Value” (GRV).
Planning Status: Status of Development Application (DA) or Building Approval (BA).
Sponsor Track Record: Summary of previous successful projects completed by the development team.
Stop chasing banks and start comparing clear, transparent construction term sheets tailored to your project’s specific requirements.
For developers with a complete feasibility study and DA status, we can often provide indicative lender feedback within 24–72 hours.
Yes. While Tier 1 banks usually require personal guarantees, we have extensive relationships with private funds and institutional lenders that offer non-recourse structures for qualified projects.
LTC stands for Loan-to-Cost. It represents the percentage of the total project budget (land + construction + soft costs) that the lender is willing to fund.
Yes. We facilitate construction financing for assets in all major capital cities—Sydney, Melbourne, Brisbane, Perth, Adelaide—and key regional growth hubs.
