Private bridging finance in Melbourne
Private bridging loans for Melbourne companies, developers and investors, including land settlement bridges, the kinds of deals we see and what lenders need.
In Melbourne, the bridging enquiries we see are mostly about land: settling a site before the construction loan is ready, holding a site while approvals are worked through, or releasing equity from existing property to fund the next project. A private bridge covers the gap between the settlement date and the bank or construction lender's money.
We lend $1M to $20M for business and investment purposes, over 6 to 36 months, and we normally settle in 5 to 10 business days once the valuation is in.
Melbourne deals we've looked at
The examples below are based on real enquiries, but the numbers and details have been changed so none of them can be identified.
A land settlement bridge. A developer needed to settle a site and hold it for a few months until the construction loan was in place, at a sensible LVR against an independent valuation. The exit is a construction facility, and the broker had already spoken with banks about their presale requirements. It's the kind of bridge that works, because the value is independently assessed and the exit is a real lender with a real process.
Prestige property where the valuations came in low. An investor wanted to borrow against unencumbered property to clear business debt, with a staged sale as the exit. The valuations came back well below the owner's estimates, which changed the numbers, and another lender ended up funding it. It's a common story in Melbourne's prestige market this year.
A land purchase on a long settlement. A buyer needed a loan to complete a purchase after paying a large deposit and making a further contribution. They wanted pricing at several LVRs, and another lender won it.
Rural land with an ambitious value. A large second mortgage against a value well above what the comparable sales supported. We declined it because the value didn't hold up.
Pre-development land. A request for a high LVR against a site that needed months of work before rolling into construction. We don't lend on development sites against future value, so it was outside what we do.
What makes a Melbourne bridge work
- An independent valuation, on an as-is basis. Land is valued as land, not as the finished project.
- An exit that's already in motion. A construction lender's indicative terms, presales underway or a sale contract.
- Enough room for interest. On a land bridge, six months of capitalised interest can be the difference between a deal that fits and one that doesn't.
- The right entity. A company or trust borrowing for a business or investment purpose.
Frequently asked questions
Can I use a private bridge to settle land in Melbourne?
Yes, if the land is valued on its current basis and there's a clear exit, like a construction loan or a sale.
Will you fund construction?
No. We bridge to the construction lender, and we're happy to introduce you to specialists who do construction finance.
How quickly can you settle?
Usually 5 to 10 business days after the valuation is in, which is why most land bridges come to us a few weeks before settlement.