Build With the Right
Capital Behind You.
Development finance is the most complex — and the most consequential — lending decision a property developer makes. Get the capital stack wrong and your project stalls. Get it right and your feasibility becomes a reality. Tenfold structures development finance from land acquisition through to residual stock, across banks, non-banks, and Australia's leading private credit funds.
The Development Capital Stack
Combined senior + mezz can reach 80–85% of total development cost. Tenfold structures the full stack or any single layer.
The Big Banks Have Stepped Back.
The Opportunity Has Never Been Bigger.
Australia's major banks have significantly retreated from development lending, leaving a $50+ billion funding gap that is now being filled by specialist non-bank lenders and a rapidly maturing private credit market. For developers who know how to navigate this landscape — and work with a broker who does — access to competitive, flexible development capital has never been stronger.
Every Layer of the Stack.
Every Stage of Your Project.
Development finance is not a single product — it is a suite of solutions deployed at different stages and risk positions within your project. Tenfold accesses every layer.
Stage 01 — Acquisition
Land Acquisition Finance
Securing the right site at the right time requires fast, flexible capital. Land acquisition loans provide the funding to act decisively — whether via private treaty, expression of interest, or auction — before you have a full development approval in place. Typically structured as short-term facilities with interest capitalised, these loans bridge the gap between site control and construction finance.
Stage 02 — Construction
Senior Construction Finance
The primary debt facility that funds your build. Senior construction finance is drawn progressively against construction milestones and is secured by a first mortgage over the development site. Lenders assess project feasibility, builder quality, pre-sale levels, and the developer's track record. Getting the senior facility right — including cost controls, drawdown mechanics, and contingency provisions — determines your project's financial health from slab to settlement.
Stage 02 — Gap Funding
Mezzanine Finance
Mezzanine debt sits behind the senior construction loan, filling the gap between what your senior lender will provide and the equity you're willing to commit. Secured by a second mortgage, it allows developers to stretch leverage to 80–85% of total development cost, reduce cash equity requirements, and free capital for additional projects. Mezzanine lenders assess the strength of the senior facility and the project's profit margin — typically requiring a minimum 20% return on cost for approval.
Stage 02 — Equity Layer
Preferred Equity & JV Structures
Where mezzanine debt requires fixed interest payments, preferred equity sits in the capital stack as an equity instrument — with a priority return profile and, in many structures, participation in project upside. Private credit funds and family offices frequently deploy preferred equity to fill the gap between senior debt and the developer's own contribution, taking a higher return in exchange for sharing project risk. Joint venture structures take this further, bringing a capital partner in as a co-developer with shared profit and loss.
Specialist Solution
No-Presales & Non-Conforming Finance
Not every project qualifies for standard bank construction finance — and not every developer has the pre-sale coverage banks demand. Specialist non-bank lenders and private credit funds will consider projects with no presales, where the fundamentals are strong. These facilities price the additional risk with higher rates, but for developers in strong markets with proven track records, they unlock projects that would otherwise stall at the finance stage.
Stage 03 — Post-Construction
Residual Stock & Refinance
Once construction is complete and your settlement programme is underway, residual stock facilities refinance unsold completed units — replacing the expensive construction facility with lower-cost, longer-term debt. This reduces holding costs on unsold stock, gives you time to maximise sale prices rather than accepting distressed offers, and can free equity for your next project before the current one is fully sold down.
Development Finance Demands
More Than a Rate Comparison.
The right development finance broker doesn't just find a lender — they structure a facility that protects your feasibility, your timeline, and your next deal.
Feasibility-First Thinking
We stress-test your feasibility before we approach a single lender. Understanding your cost base, contingency positions, and profit margins ensures we structure a facility that holds — even if construction costs move.
Access Across the Full Stack
From major bank senior debt to private credit mezzanine and preferred equity, we access every layer of the capital stack — and know which providers operate at each layer and what they require to move quickly.
Pre-Sale Strategy
We know exactly what pre-sale coverage each lender requires and help you structure your sales programme to hit those thresholds efficiently — minimising your selling costs without compromising your finance timeline.
Speed When It Matters
Development opportunities don't wait. Our relationships with decision-makers at banks, non-banks, and private credit funds mean we can move from indicative terms to formal approval faster than the market typically expects.
Important Considerations
Before You Break Ground
Development finance is the highest-stakes lending in the property market. The considerations below separate developers who complete on time and on budget from those who encounter costly surprises mid-project.
- Lenders require a minimum 15–20% return on cost. Most senior construction lenders — bank or non-bank — will only fund a project where the feasibility demonstrates a minimum 15–20% return on total development cost. If your feasibility is tight, address it before you go to market for finance. A credible buffer in your numbers significantly improves lender confidence and approval speed.
- Pre-sales can make or break your facility. Major banks typically require pre-sales covering 70–100% of the debt facility before they'll issue a formal approval. Non-bank lenders and private credit providers take more flexible positions, but require stronger feasibility and higher project returns in exchange. Know your lender's presale requirements before you structure your sales programme.
- Builder risk is lender risk. Your choice of builder is scrutinised as carefully as your feasibility. Lenders want to see a fixed-price building contract with a licensed, insured builder who has the financial capacity and track record to complete the project. Novice builders, cost-plus contracts, or builders with limited experience will restrict your lender options significantly.
- Interest is typically capitalised — model this carefully. Most development loans capitalise interest into the facility rather than requiring cash payments during construction. This preserves your cash flow during the build phase, but it means your total debt at completion is higher than your original draw. Model the full capitalised interest cost into your feasibility to ensure your end position remains viable.
- Cost overruns are your responsibility. Construction finance facilities are structured against a fixed cost plan. If your construction costs exceed the approved budget, the additional costs must be met from your own equity — not from the lender. A minimum 10% contingency built into your feasibility is standard practice; experienced developers build in more.
- Mezzanine lenders must be approved by your senior lender. If you intend to use mezzanine finance alongside your senior construction loan, the senior lender must formally consent to the second mortgage position. This is standard practice but must be structured correctly from the outset — attempting to add mezzanine finance after the senior facility is in place can trigger a default event.
- Your track record is a lending criterion. First-time developers are assessed far more conservatively than experienced operators. Lenders look at your prior project history, professional team, and project scale relative to past experience. If you're making the step from residential renovation to multi-lot development, expect more conservative LVRs and presale requirements — and plan your finance strategy accordingly.
Banks, Non-Banks & Private Credit —
The Full Development Finance Market
Tenfold maintains active relationships across every tier of the Australian development finance market — from the major banks to the private credit funds reshaping property development lending.
Major Banks — Senior Construction Finance
Specialist Non-Bank Lenders — Flexible Senior & Mezzanine
Private Credit & Alternative Capital — Mezzanine, Preferred Equity & JV
Lender appetite for development projects changes with market conditions, asset type, and location. Tenfold maintains live intelligence on which lenders are actively deploying — and which are not — so your project goes to the right table every time.
Let's Structure Your
Development Finance.
Bring us your feasibility, your site, and your timeline. Tenfold will map the capital stack, identify the right lenders at each layer, and give you a clear picture of what's achievable — before you commit to anything.