Corporate Finance
Real Estate & Development Funding
Senior, mezzanine and specialist finance for property and development projects.
Corporate Finance
Transaction and capital advisory across the investment lifecycle.
Overview
How we help.
Property development finance is a specialist market. Senior construction debt, mezzanine facilities, presale requirements, land finance and residual stock facilities each have distinct pricing, structure and risk dynamics. The right combination depends on the project, the developer and the market environment.
Corson Fiske advises developers on development finance strategy and facility placement. Our relationships cover major banks, non-bank construction lenders, private credit funds and specialist mezzanine providers.
We work alongside the firm’s property legal and tax teams to deliver integrated advice across structuring, tax and documentation.
Capabilities
- Construction finance structuring
- Senior and mezzanine debt
- Land banking and site acquisition finance
- Residual stock facilities
- Presale advisory and commitments
- Private credit and non-bank capital
- Completion risk and bond arrangements
- Workout and project refinancing
Client Situations
When clients engage us.
The issues that bring clients through our door tend to fall into familiar patterns.
A new development needs financing
A project requires senior and potentially mezzanine finance committed before acquisition or construction.
Presale conditions are under pressure
Bank presale requirements are proving difficult to meet and alternative solutions are needed.
A residual stock position needs funding
Unsold completed stock requires specialist residual stock financing.
A project is encountering difficulty
Cost overruns or sales challenges require facility amendments or refinancing.
An unsolicited approach has been received
A potential acquirer has made contact. The board needs independent counsel on whether, when and how to respond.
A facility is approaching maturity
An existing debt facility is due for refinancing and the terms achievable in the current market need to be assessed independently.
Outcomes
What you can expect.
- Development finance structured to project economics
- Access to the full range of funding sources
- Workable solutions in stressed situations
- Clean transitions between finance stages as projects progress
Client Success
Outcomes from recent engagements.
Indicative results from engagements within this practice area. Client details have been anonymised; outcomes reflect actual matters completed by the firm.
$95M
Transaction Closed
Sell-side M&A
Led a competitive sell-side process for a family-owned industrial business, achieving a $95M transaction with strategic trade buyer.
Industrial business
$28M
Capital Raised
Growth capital
Arranged $28M of senior and mezzanine capital for a healthcare group’s multi-site acquisition program.
Healthcare group
1.4x EBITDA
Valuation Uplift
Sale readiness
Delivered an 18-month sale readiness program that lifted the valuation multiple from 4.2x to 5.6x EBITDA at completion.
Wholesale distributor
Options & How They Work
Understanding Real Estate and Development Funding
Property development funding is a specialist corner of the capital markets with its own language, instruments and risk dynamics. Getting the capital stack right is usually the single most consequential decision a developer makes on any project — it determines the cost of capital, the presale requirements, the equity commitment, the margin of safety and, ultimately, whether the project remains viable if something goes wrong. The main sources of development capital each work differently and suit different project profiles.
Senior Construction Debt
How it works. Senior debt is the first-ranking facility funding the majority of construction costs — typically 60% to 75% of total project cost. Major banks provide this capital at relatively low cost but impose strict preconditions: presale coverage ratios (often 100% debt cover from qualifying presales), fixed price build contracts, experienced builder requirements, quantity surveyor oversight and regular progress payments.
When it fits. Essential on any project above a threshold size and the preferred structure where the project meets bank requirements. Most commercially viable where presales can be achieved before construction commences.
Non-Bank Senior Debt
How it works. Non-bank lenders — private credit funds, specialist construction lenders and mortgage trusts — provide senior debt to projects that do not meet major bank criteria. Higher loan-to-cost ratios are available (often 70-80%+), presale requirements are more flexible, and approval timeframes are faster. Pricing reflects the wider risk profile.
When it fits. Suited to projects that fall outside major bank criteria — residual stock, smaller developers without long track records, projects with limited presale coverage, or where speed to close is critical.
Mezzanine Finance
How it works. Mezzanine finance sits between senior debt and equity in the capital stack. It is typically priced at 12-20% per annum (or higher), is second-ranking to senior debt, and usually structured as a loan with equity-like return characteristics. Used to bridge the gap between senior debt and the developer’s equity.
When it fits. Appropriate where the senior debt limit falls short of the total project need and the developer wants to minimise equity contribution. The pricing makes it most commercially sensible on projects with strong margins where the mezzanine cost is comfortably absorbed.
Land Banking and Acquisition Finance
How it works. Short-term facilities funding the acquisition of development sites before construction commences. Typically 12-24 month terms, secured by the land itself, with exit from either senior construction finance commencement or the sale of an approved DA.
When it fits. Used to lock in sites while planning approvals progress, or to hold strategic land positions ahead of market timing.
Residual Stock Facilities
How it works. Short-term facilities against unsold completed apartments or lots, typically used when senior construction debt is retired but not all stock has settled. Allows the developer to release equity from the project while continuing to market residual stock.
When it fits. Essential tool for managing the tail of any significant development project where slower-than-forecast settlements would otherwise lock up equity and constrain the next project.
Presale Funding
How it works. Some non-bank lenders will provide funding against contracts for off-the-plan sales that have not yet settled — effectively bridging the period between contract exchange and completion. Allows developers to draw on future sale value to fund construction.
When it fits. Useful where presales are strong but settlement dates are distant, providing liquidity to keep construction progressing without waiting for sale proceeds.
Benefits
Benefits of the right development funding structure.
- Matches capital to project risk profile. A well-structured capital stack places lower-cost capital where risk is lowest (senior debt on stable completed stock) and higher-return capital where risk is highest (mezzanine on pre-construction). Done properly this minimises overall cost of capital.
- Preserves developer equity. The right combination of senior and mezzanine finance allows developers to undertake projects with 15-25% equity rather than 40%+, enabling multiple concurrent projects and stronger return on equity.
- Manages presale requirements strategically. Choosing between major bank senior (high presale requirements, low rate) and non-bank senior (lower presale requirements, higher rate) is one of the key trade-offs in any project. The right answer depends on market conditions and project marketability.
- Provides flexibility through the cycle. Well-structured facilities include amendment, extension and workout provisions that allow the developer to respond to market changes, construction delays or unexpected events without triggering default.
- Enables scale and repeat projects. Developers with established funding relationships across senior, mezzanine, presale and residual stock facilities can take on larger and more complex projects than those relying on single-source funding.
Why Corson Fiske
Experience where it counts.
Clients engage Corson Fiske because they need advice they can act on — delivered by senior practitioners who understand both the technical detail and the commercial consequences. Every engagement is led by a partner with direct experience in corporate finance transactions.
Our integrated structure means tax, legal, accounting and advisory questions are resolved within a single firm. For clients operating across Australia, Asia, New Zealand or Asia, our office network in Sydney, Melbourne, Perth, Singapore and Auckland provides consistent advice across jurisdictions.
Our Approach
A refined four-phase method for every engagement.
Corson Fiske applies the same disciplined framework to every matter, regardless of scale. The phases below are not a marketing device — they are the actual structure our partners use to move clients from uncertainty to resolution.
Phase One
01
Understand
A confidential partner-led briefing to establish the facts, commercial drivers, timing pressures and stakeholder dynamics.
- Confidential scoping conversation
- Document and data review
- Stakeholder mapping
- Initial risk identification
Phase Two
02
Analyse
Structured technical and commercial analysis of every realistic option, with a clear view of risks, costs and likely outcomes.
- Technical legal and tax analysis
- Commercial modelling
- Risk-weighted options assessment
- Precedent and market benchmarking
Phase Three
03
Recommend
A written partner recommendation in plain English — not a list of caveats. We stand behind our advice and explain our reasoning.
- Clear written recommendation
- Implementation sequencing
- Stakeholder communication plan
- Contingency and fallback positions
Phase Four
04
Execute
Hands-on delivery of the agreed plan with partner oversight, regular milestone reporting and clear handback at completion.
- Implementation leadership
- Stakeholder engagement
- Milestone tracking and reporting
- Completion review and handback
Key Considerations
What clients need to know.
Engaging external advisors on any significant matter raises practical questions about scope, timing, cost and outcomes. We believe in being straightforward about each of these from the first conversation.
How engagements typically begin
Every engagement starts with a confidential initial conversation — usually 30 to 60 minutes — in which we listen to the situation, ask the questions needed to understand it properly, and share a view on whether and how we can help. There is no charge for this conversation and no obligation to proceed.
How we scope and price work
We prefer fixed-fee or capped-fee arrangements wherever the scope allows. Where the scope is genuinely uncertain — as in contested matters — we agree hourly rates upfront and provide regular fee updates against defined phases. We do not bill for internal discussions, file opening or routine administration.
Who you will work with
Every engagement is led by a partner with direct experience in the matter type. That partner remains your primary point of contact throughout. Specialist colleagues join the team where their expertise is required, but you will never be passed from person to person or find the partner you hired is no longer on the file.
How we handle confidentiality and privilege
All engagements are subject to strict confidentiality. Where legal advice is being delivered, it is provided through our incorporated legal practice and attracts legal professional privilege. We take document security, information handling and communications discipline seriously on every matter.
Get the right advice from Corson Fiske.
Confidential, no-obligation initial consultations with a partner who specialises in corporate finance transactions.