Author: Ben Frietlander

Capitalised Interest Loans in Development Finance

Capitalised Interest Loans In the dynamic realm of development finance, capitalised interest loans serve as a strategic option for lenders and developers alike, offering flexibility to the client and risk mitigation for the lender. Let’s delve into the core features of capitalised interest loans and understand why it is the preferred repayment type in the […]

The Capital Stack – What is it and why does it matter?

The Capital Stack When it comes to property development, one of the most important concepts to understand is the capital stack. In simple terms, the capital stack refers to the different sources of financing that are used to fund a property development project. These sources of financing can include equity, debt, and other types of […]

10 Questions From Your Development Funder (Pt. 2)

10 Questions Lenders Ask When Funding Property Developments (Part 2) Welcome to part two of our blog series, where we explore the top 10 questions lenders and finance companies in Auckland will ask during the application process. The previous blog post covered the first five questions lenders will ask. In this instalment, we will delve […]

10 Questions From Your Development Funder (Pt.1)

10 Questions Lenders Ask When Funding Property Developments(Part 1) Securing funding for your property development can be challenging , but understanding what information is relevant to your lender can make the process less daunting. This blog post will be the first in a two-part series where we break down some of the critical questions you […]

Settlement Defaults – What You Need To Know

It is well established that settlement default risk increases during downturns in the property market. A settlement default occurs when a purchaser fails to complete the purchase of a property according to the terms of a binding sale and purchase agreement. At ASAP, we have personally witnessed an increase in the number of purchasers attempting […]

Exit strategies

Formulating a robust exit strategy is a critical part of the development process. When assessing an application for a development loan, the credibility of a clients’ proposed exit strategy will be reviewed and assessed in detail. There are several ways a developer can exit a construction loan – the most common strategies being: to sell […]

The Subdivision Process

Subdivisions are a common feature in property development. The subdivision process is where a parcel of land is divided into one or more parcels. When complete, a unique Record of Title will issue for each new parcel of land. In our experience, some of the most common issues in development pertain to an inability to […]

Property Development Due Diligence – Neighbour Consents

In our previous blog we explored key factors property developers should consider when undertaking pre-purchase due diligence. In this blog, we revisit some of those concepts with a particular focus on neighbour consents and approvals. In our experience, neighbours will object to having a development occur in their back yard. This is not surprising as […]

Property Development Due Diligence

Thorough due diligence is an essential risk mitigation strategy that all purchasers need to undertake before acquiring a property. For developers, it is an opportunity to test a project’s viability and identify key risk items that may impede or prevent a project’s completion and you ability to obtain finance. Due diligence should include an investigation […]

Property development fund flows and sector risk

By now, most property developers will be well aware of the credit crunch sweeping through the development finance sector. With limited funds at their disposal, development finance lenders are allocating funds on a preferential basis with a focus on existing client relationships – at the same time, lending criteria is adjusting. Lower LVR’s and higher […]