A guide to equity and loan capital for property development

Securing capital for purchasing land for property development

We believe that securing capital for purchasing land for property development, developing land already owned or buying property for refurbishment and re-use, should not be a process that sets back your project. 

There are two main types of funding available for construction based commercial activities, like development projects:

  • Funds provided in return for a share in the ownership of the project: i.e. a share of the 'Equity'.
  • Funds provided in the form of a loan or loans which will be repayable at some future point in time: Otherwise known as 'loan capital'.

There are also various 'hybrid' types of funding. These contain elements of both equity and loan capital or a right to convert a loan into equity.

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What to expect when seeking finance for your construction project?

Some of the standard requirements to qualify for property development and construction capital finance are as follows:

  • Providing a deposit. Usually 25% – 40% of the value or cost of the property involved, though sometimes less.
  • Contributing an equity share if the deposit available is less than the minimum (usually 25% – 40%) of the property value.
  • Risk evaluation, to show that you can repay the loan at the end of the agreed contract term.

Brookfield Finance are aware of the needs of, and challenges faced by developers, architects and contractors who seek finance for property development.

Seeking finance for your construction project
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Our promises to you?

  • Fast action on your enquiry for property development and construction capital. We will ensure you receive an indication of acceptance within days.
  • Your options between the types of rates (fixed or variable) will be discussed with your situation in mind. Possible early redemption and all terms of the loan will be examined. We will dedicate the time needed to ensure that you have the best loan-to-value amount available.
  • Interest and capital repayments can be structured to reflect the stages of the project. In particular, we will look into interest only options during construction phases.
  • Your banking relationship will be reviewed to see if alternative arrangements may be more suitable.

Why use Brookfield Finance LTD?

  • At Brookfield Finance, we have considerable experience in helping clients to expand their businesses by accessing the funding that is needed.
  • By considering your unique needs, we will find the business finance solution that is most appropriate for your business and your industry. We will then present you with the most financially attractive options to help you move forward quickly.

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