Property Development Loan - Multi-purpose


Multi-purpose property development loans are short to medium term facilities used to develop various types of multi-purpose or mix-use properties. This type of property development extends to ground-up developments, construction projects, land purchase, property renovation and more. It typically involves a construction loan to cover the building of a project and an investment/commercial mortgage if part or all of the property is being retained as a long-term investment. Often, rather than being released as one upfront sum, lenders may progressively release funds at the end of each building stage namely, the base, frame, lock-up, fixing and completion stages. For projects requiring larger loans, borrowers can syndicate (split across more than one lender) the loan by using our Syndication process.


Development finance can be structured to coincide with sales and repaid relatively quickly, keeping overall borrowing costs to absolute minimum. This can be more affordable than many long-term borrowing facilities. Interest is only charged on the funds released which may improve return on investment.


The loan is secured against the value of the property being developed and any other property offered as a top-up. There may be an opportunity to secure 100% finance to develop a property by providing security additional to the property being developed. Where the loan is only secured by the property being developed, generally lenders may consider a loan of up to 80% of the value of the project depending on type and size.

Repayment terms

During the construction phase of the project, interest may be capitalised (added to the principal amount owed) to preserve cash-flow. However, repayment of the loan (principal and interest) will which generally occur when marketing and on-selling begin. The borrower will be required to pay interest at a fixed or variable rate or a mix of the two on the principal outstanding and any agreed upfront, ongoing and exit charges


To be matched with a Multi-Purpose Property Development Loan bidder, just follow our anonymous Property Development Loans/ Multi-Purpose listing process.