This article was provided by Trilogy Funds.
Seeking tailored finance for commercial property development or construction?
The Trilogy Funds Lending Team is here to help you and your clients with a property development or construction loan between $3million and $40million.
They have been providing finance solutions for more than 20 years and are currently funding more than 150 property projects across Queensland, New South Wales, Victoria, South Australia and Tasmania (as at August 31 2022).
Find out how your clients could obtain competitive property development finance.
1. Contact Trilogy Funds for a no-obligation discussion
Trilogy Funds’ dedicated portfolio managers in Brisbane, Sydney and Melbourne are specialists in structuring loans across the residential, commercial, industrial and retail property sectors.
Loan proposals are considered for any project stage. For example, funds could be provided to finance the cost of sub-dividing land into residential lots, the construction of an apartment building and/or a completed development while assets are sold down.
Before contacting the team, it is important to consider the below loan criteria which Trilogy Funds prefers:
- Developer/borrower with proven track record in property development
- Loan size between $3m and $40m
- Loan-to-valuation ratio (LVR) no greater than 65% of the gross realisable value (GRV)
- Registered first mortgage as security
- Clear marketing strategy for sell down or refinance.
Does the project stack up? Call 1800 230 099 or email [email protected] for an initial discussion.
2. Submit loan application
Complete the Trilogy Funds loan application form by ensuring the proposal is well documented to assist in the review process.
To effectively review proposals, Trilogy Funds will generally require:
- Project feasibility study
- Relevant DA approvals
- Fixed-price construction contract
- Borrower details, such as statement of assets and liabilities and financial statements
- Substantiation of borrower background and track record in property development.
For more information, view Trilogy Funds’ frequently asked questions.
3. Application assessment & indicative offer
Once the loan application is submitted, a designated portfolio manager will be assigned to review the proposal, performing due diligence and feasibility assessments.
With a strong belief in supporting developers with quality projects, Trilogy Funds focuses less on pre-sales and more on a holistic outlook, factoring in:
- Property development experience
- Project merit
- Risk mitigants
- Project gearing
- Borrower group’s financial strength.
If the proposal meets the relevant criteria and portfolio requirements, your portfolio manager will develop loan terms and prepare an indicative loan offer.
Terms will be tailored to the project merits and risk profile, with the best possible project outcome in mind. They will commonly include indicative pricing, the maximum LVR, cashflow forecasts and loan repayment options.
Knowing that time is of the essence for you and your client, an indicative response to the application will typically be provided within 48 hours.
4. Pay commitment fee & await formal letter of offer
Are you and your client satisfied with the proposed terms?
Once the indicative terms are accepted and a commitment fee is paid, your portfolio manager will prepare and submit a loan submission to the Trilogy Funds Lending Committee – an experienced panel including a solicitor, quantity surveyor and finance professionals.
If the Committee is satisfied with the loan proposal, your portfolio manager will issue a formal letter of offer.
Once accepted, this will progress to loan settlement and the first tranche of funds will be issued.
5. Development funds available at each drawdown
Each time your client submits a drawdown request, funds are readily available for payment via Trilogy Funds’ pooled mortgage trust.
These requests are managed by a dedicated Lending Operations Team who specialise in processing progress draws, as well as contractor remittances and invoices, to best maintain project momentum.
Should your clients ever require additional project support, Trilogy Funds can coordinate value-add services via their comprehensive network of property professionals such as quantity surveyors, valuers, project managers, real estate agents and more.
6. Exit strategy
Tailored support will be provided from loan inception through to loan completion.
During the loan lifecycle, interest is typically capitalised and repayments generally are not required to commence until project completion, enabling your clients to free up capital during development.
The loan can typically be repaid or refinanced at the end of the loan term, in accordance with what was set out in the original loan submission.
Learn more: Trilogy Funds
This article has been prepared for existing and prospective borrowers and brokers and provides information only about Trilogy Funds’ lending services. Trilogy Funds Management Limited (Trilogy Funds) ABN 59 080 383 679 AFSL 261425 is not a licensed credit provider and does not make loans regulated by the National Credit Code. The source of Trilogy Funds’ loans may include managed investments schemes registered with ASIC, as well as other private lending arrangements with high net worth investors. If you would like more details on our investment opportunities, please contact us.
Clinton Arentz | Trilogy Funds
Clinton has over 25 years’ experience in commercial property development and management, asset and facilities management, and project delivery. As Head of Lending & Property Assets, he is responsible for Trilogy Funds’ lending team, overseeing the growth of the diverse construction loan portfolio entailing projects across Australia’s residential, commercial, industrial and retail property sectors. He is passionate about providing property developers with tailored and agile funding solutions for site acquisition, construction and residual stock. Clinton also oversees the acquisition and management of Trilogy Funds’ property assets, applying his experience in risk management, capital structuring, acquisitions, and property syndications.
