Pre-Development Loans
Killarney Capital can provide funding for the refinance or acquisition of property that is indented for future development.
It may be that you need to settle a property or move it on from an existing lender while you work through planning, rezoning, consenting or obtaining pre-sales to qualify for development funding.
Unlike development and construction loans, pre-development loans are typically fully drawn at the outset.
We provide pre-development funding for:
Developable Land
Land that is appropriately zoned for development but may require a resource consent plus other due diligence to make it “shovel-ready” and able to be funded by a development and construction loan – typically within a 12-month window.
Land Banks
Land that has future development potential but may require a change in zoning and/or a resource consent to unlock the value of a development. This may take place over a longer timeframe – up to 24 months.
Pre-development loans are typically provided at lower loan-to-value ratios (up to 50%) given the associated risks involved in getting the land into a position where a development can proceed.
You may also need to service the monthly interest costs that apply to pre-development loans to maintain the loan-to-value ratio, pending the property qualifying for development funding.
lending guidelines
Is your project ready for the next stage?
Check our handy FAQs and understand everything you need to complete your application quickly and easily. There’s a few requirements, but we make it easy at every step of the process.