Cost Based Full Doc | Development Finance | ACG

Total Development Cost (TDC) based Property Development Finance refers to traditional development finance sourced via Banks and Major Institutions, wherein the Bank will lend a percentage of the actual TDC of the project up to a maximum of 80% wherein the Property Developer will need to contribute a minimum of 20% as cash or equity.

When the TDC method of finance is used the Property Developer will need to provide 2 to 3 years financials and tax returns and mitigate risk by obtaining pre-sales in order to draw down the funding. TDC Development Finance is best suited to Property Developers with sufficient cash and / or equity to contribute to their project, who are looking for a cheaper price point to meet their needs.

ACG Private Funding Line

Below is a simple example of a funding table for an ACG TDC Development Finance facility:

Gross Realisable Value:	$17,000,000
Land Cost / Value:	$ 6,000,000
Construction Costs:	$ 6,000,000
Total Costs (ex interest):	$12,000,000
Construction Period:	18 months
Interest Rate:	8.5% pa
Presales:	$10,000,000

Hard Costs	Total Costs	Developers Equity	Total Loan
Land at Cost / Valuation	$ 6,000,000	$ 3,000,000	$ 3,000,000
Preliminaries	$ 200,000	$0	$ 200,000
Council Contributions	$ 140,000	$0	$ 140,000
Professional Fees	$ 120,000	$0	$ 120,000
Construction (or subdivision) Costs	$ 6,000,000	$0	$ 6,000,000
Construction Contingency	$ 300,000	$0	$ 300,000
Sub Total	$12,760,000	$ 3,000,000	$ 9,760,000

Marketing Costs	$ 150,000	$ 150,000	$0
Sales Commissions	$ 300,000	$ 300,000	$0
Stamp Duties	$ 100,000	$ 100,000	$0
Sub Total	$ 550,000	$ 550,000	$0

Interest	$ 500,000	$0	$ 500,000

Total Development Costs	$ 13,310,000	$ 3,550,000	$ 10,260,000

Soft Costs

****Please note that rates and figures used are for illustrative purposes only, any actual transaction will be priced according to the specifics of the project*.

ACG TDC Development Finance can be summarised as follows:

Available maximum loan of 85% of TDC;
Property developer needs to contribute a minimum of 20% cash or equity to the project;
Presales are required;
Full Financials are required

Contact ACG today to learn more about TDC Development Finance! or Download our Development Finance inquiry form