Development Finance Lender – Bespoke Construction Loans | ASAP Finance

Development & Construction Loans

Development finance is our bread and butter. The bedrock of ASAP Finance is helping Kiwi developers with securing finance to get their development projects out of the ground, having reviewed thousands of transactions and funded over $2 Billion in project value. Our practical-minded and experienced lending managers have a strong business acumen that hugely benefits our clients in the development sector. Each year our construction loans contribute to over 400 new builds and 300 new sections to the New Zealand housing stock.

As a privately owned non-bank lender, we’re able to waive most of the pre-drawdown conditions that developers generally encounter with bank funding. We break down barriers to funding across all stages of a project's lifecycle, from land acquisition to construction.

Whether you’re looking to build a single residential house or master planning a staged subdivision, ASAP Finance has a proven track record with commercial property finance. Our lending managers can tailor a bespoke funding solution for your development costs.

Key Benefits of the ASAP Finance Development Packages

  • Simple lending criteria with no hidden costs and fixed fees.
  • We take advantage of our independence, adapting our structures and products to create highly competitive packages for our clients.
  • Loans can be settled within two days of the receipt of your initial funding application.
  • We staff experienced lending managers with an active hand in the development industry.
  • We tailor a solution specific to your needs with interest-only, part interest-only, and capitalised interest loans available.

Our bespoke development funding packages are available for:

  • Residential developments
    • Standalone houses
    • Duplex, triplex and terrace townhouses
    • Multi-unit apartments
  • Industrial & commercial construction
    • Commercial offices/retail units
    • Industrial warehouses
    • Childcare centres and other specialist commercial assets
  • Subdivisions
    • Residential, commercial, and industrial subdivisions, including master-planned subdivisions.

It is key to note that we do not offer development funding to residential owner-occupiers, as these are classed as consumer loans (CCFA 2003).

Reach out to ASAP Finance now for customised funding and construction expertise.

Get Bespoke Development Finance

Development Finance Assessment

From inception to realisation, ASAP lending managers review the full development lifecycle to deliver funding packages that are specifically tailored to the needs of the client.

Our comprehensive process allows us to give constructive feedback and advice to clients not only at an enquiry level, but also on an ongoing basis during the term of the loan, assisting with communication between the client, contractors, and consultants.


What we review

Unlike turn-key home loans, construction loans require a comprehensive breakdown of various budgets, consents, and contracts.

  • Project feasibilities and construction budgets
  • Building plans and consents including resource consents, building consents, and engineering approvals
  • Construction contracts and tenders
  • Pre-sales estimates
  • Exit strategy assessment

ASAP Funding Process

1. Submit a funding application. We work quickly, assessing your project and providing indicative terms in as little as 24 hours.

2. Issuing of formal letter of offer. Following your acceptance of the indicative terms, we issue a letter of offer detailing:  

  • Our fees
  • Your interest rates
  • Loan terms
  • Any terms and conditions (we try to keep these as minimal as possible).
  • Unlike other lenders, our letters of offer are fully credit approved; we stand by our commitment to fund your project.

3. Creation of construction loan documents. Once you have signed our letter of offer and paid the deposit on our fee, we work with your solicitor to arrange the completion of loan documents and work with them towards settlement.

If you are working with a mortgage broker, we will pay brokerage direct, typically equivalent to 1% of the loan amount on drawdown. Our establishment fee and legal costs are payable by you. These are stipulated upfront.

What Our Clients Have to Say

Eton Estate, Hamilton

“Other finance companies were scurrying away. The banks were onerous in terms and conditions. ASAP Finance backed us, and that first loan set up a relationship that has lasted more than a decade.”

- Tristan Jones

It was the middle of the global financial crisis and finance companies were going down left right and centre when Tristan Jones, of Northview Capital, was in the market to finance what would become one of Hamilton’s premier sub-divisions.

“ASAP Finance were active in a market where everybody else was pulling out,” says Jones. “We met and ASAP Finance understood our business and our project straight away

“Other finance companies were scurrying away. The banks were onerous in terms and conditions. ASAP Finance backed us, and that first loan set up a relationship that has lasted more than a decade.”

The result of that first project was the prestigious Eton Estate in Hamilton.

Jones says that that typically some developers will shift finance to the banks once pre-sales conditions are met – although every project is different depending on size, location, scale, and whether it is consented or not.

“We often won’t go to the bank for funding even when we have the choice to do so, because the responsive service that we get from ASAP Finance offsets the additional cost. We don’t have to put up with the onerous demands around valuations and quantity surveys that the banks make.

“ASAP Finance makes a real effort to understand all the moving parts of a project and that when you are developing properties the reality is that there can be lots of draw-downs and cost over-runs. They really understand the detail and adapt accordingly. Most other financiers however, will avoid needing to understand the intricacies of what a project is all about.”

Jones says that there are occasions when ASAP Finance will fund a development right to the end.

“ASAP Finance has completed between 20 and 30 loans with our business (each loan could be a stage of a project), including funding through to stages six and seven at Eton Estate.

“We’re developers. We want to get on and do things; to build homes for Kiwis like Eton Estate. Finding a funding partner like ASAP Finance has been a real advantage because they understand our business; they are responsive in they will adapt funding to suit as the market moves and evolves.”

For example, says Jones, say a developer has a three stage sub-division and gets $1.8 million in funding approved from a mainstream bank for the first stage. All good. But in week three, the developer realises that they have sold 18 out of 20 lots and the market is clear that one stage is not enough to meet demand. Further, the business case for a second stage is compelling.

“If you go back to the bank for additional funding, they will view you as changing the loan and therefore unable to manage a project – even though success and economics is behind the decision.

“ASAP Finance, however, will see the business case. They will see that you have met the first milestone and that it makes business sense to build over a wider footprint to take advantage of the economies of scale. They will work with you so that everybody wins,” Jones says.

“That’s why we choose to work with ASAP Finance.”

Flemington Sub-division, Lincoln

“With a big project it’s impossible to get a bank on board, and I’m not sure a bank is the right partner anyway. Common sense is not common these days, but that’s what ASAP Finance brings to the projects we work on”

- Shane Kennedy

Flemington Sub-division, Lincoln

“With a big project it’s impossible to get a bank on board, and I’m not sure a bank is the right partner anyway. Common sense is not common these days, but that’s what ASAP Finance brings to the projects we work on”

- Shane Kennedy

Developer praises ASAP Finance’s common sense business approach

Referred by a couple of different people to ASAP Finance just before the start of the successful 58ha Flemington sub-division in Lincoln, developer Shane Kennedy says the common theme of his decade-long experience with ASAP Finance is a common-sense approach to financing a project.

“With a big project like Flemington, it’s impossible to get a bank on board, and I’m not sure a bank is the right partner anyway. Common sense is not common these days, but that’s what ASAP Finance brings to the projects we work on,” Kennedy says.

“By common sense I mean they assess the risk in the project from our point of view, and their point of view. They understand that we, as the developers, have no intention of going into a project where there is too much risk. Once we met their requirements, the draw down process was simple.”

Working with ASAP Finance now for more than ten years, Kennedy says it’s a pleasure knowing he deals with the same person, rather than somebody different every time.

“For a big project it is important, but difficult, to build a personal relationship with your financier and to maintain it, but that’s exactly how it has worked.”

ASAP Finance was there for Kennedy through the first three stages of the 570 lot Flemington sub-division in Lincoln, until the project was up and on its feet. Since then there have been other projects in Auckland and Christchurch, including the latest, Verdeco Park, which is located near Lincoln in the Selwyn District.

“It is difficult to get building projects off the ground and bordering on impossible with the banks. Even from the point of view of having to supply more security than is reasonable and 100% pre-sales, the banks only then lend up to 70% of the value – to me that is an over cautious approach that stops a lot of people from progressing with developments like we're doing.

ASAP Finance aren't high risk lenders either, but the structure of their lending makes it achievable. Our business is well set-up in the market down here, but that doesn’t count with the bank. However, as a result of our strong relationship with ASAP Finance we can pick up the phone and talk about it. They take a common sense, business approach to a deal that is good for everybody,” Kennedy says.

If there are issues, they can easily be worked through without putting anybody at risk.

“I’m still talking to the same person at ASAP Finance that I was ten years ago, and that is a comfort for me.

“We haven't had any hiccups that caused problems, but the simplicity of the funding and how they operate mitigates risk areas. Both parties work on a common-sense policy which includes good strong relationships for ten years – I wouldn’t do my projects through anybody else.”

Read More Testimonials

We are proud of work our clients have completed.

Below is a selection of completed construction loans.

  • Construction Loan Terrace-townhouse Development

    Construction of 29 terraced townhouses, and subsequent subdivision located in Whenuapai, Auckland. The loan facility provided for capitalised interest and fees, and included a revolving GST facility. Funding was provided without any pre-sales or a QS appointed to the project.

    Loan: $12,950,000
    End Value: $19,300,000
    Loan-to-value: 67%
    Loan-to-cost: 81%
    Term: 12 months

  • Construction Loan Single-house Build

    A section purchase and construction of a single house within a greenfield subdivision in Flat Bush, Auckland. The construction loan included capitalised interest and fees with no repayments required during the build. Funding was approved without a fixed price contract in place and no valuation drawdown reports were required – instead, drawdowns were provided based on agreed milestones.

    Loan: $840,000
    End Value: $1,200,000
    Loan-to-value: 70%
    Loan-to-cost: 82%
    Term: 9 months

  • Construction Loan Master-planned Subdivision

    This construction loan was structured into two parts: (i) the purchase of an unconsented block of land in Lincoln, Christchurch, and (ii) construction and associated earthworks for the initial stages of the 120-lot land subdivision. The construction loan included capitalised interest and fees, and a revolving GST facility. 50% presales cover was achieved prior to drawdown from the construction facility.

    Loan: $19,000,000
    End Value: $29,230,000
    Loan-to-value: 65%
    Loan-to-cost: 80%
    Term: 12 months + extension

  • Residential Property Loan Purchase

    A residential investment property located in Mt Roskill, Auckland. The ‘low doc’ loan facility was approved with limited financial information provided by the client. Repayments were to be made on an interest-only basis. No valuation was required.

    Loan: $635,000
    End Value: $910,000
    Loan-to-value: 70%
    Term: 6 months

  • Commercial Property Loan Commercial Office Purchase

    A six-level commercial office building in Auckland CBD. A commercial property loan was provided to assist with the purchase of the property. Settlement occurred within just 48 hours of receiving the loan application enabling the client to avoid penalty interest and default action. Repayments were on an interest only basis. No valuation was required.

    Loan: $7,200,000
    End Value: $10,500,000
    Loan-to-value: 69%
    Term: 3 months + extension

  • Industrial Property Loan Land Purchase

    Vacant industrial land located at Tauriko Business Estate, Tauranga. The industrial property loan was provided as a 'bridge' to enable the client to complete a restructure of its group debt currently with a main bank. The client would eventually build a warehouse on the site. Repayments were on an interest-only basis. No valuation was required.

    Loan: $5,000,000
    End Value: $7,500,000
    Loan-to-value: 67%
    Term: 6 Months


Contact us for hassle-free, bespoke finance from New Zealand’s market-leading development finance lenders

With us, you gain more than a funding solution, you gain a finance partner that will stand beside you at each stage of your development. From bridging finance to construction finance, find everything you need in the property development finance umbrella. Begin your next project with ASAP Finance at your side, today.