Debt investment has traditionally been the exclusive domain of the major banks. As the majors retreat from development finance our investors are now funding established developers.
These loans allow project delivery within required timelines saving developers thousands of dollars in holding costs.
How it works:
- Traditional senior loan facility allowing developers both acquisition and construction funding.
- Fixed rate, fixed period offerings.
- Project feasibility, management capability and project locations of paramount importance.
- Investors receive 1st mortgage security over the subject property.
- Directors assets and liabilities reviewed & personal guarantees provided to lower investment risk.
- For privacy reasons most of our debt funding opportunities are confidential, contact us for further details.
Equity funding is inherently more risky than debt funding as your capital is at risk with limited recourse. CPC provides the opportunity for established developers to seek equity partners. Your equity returns are dependent on the skill and accuracy of the developer’s forecasts, investment can be lucrative if the development project is successful.
How it works:
- Developer seeks an equity raising for their project (min $500,000)
- CPC receive a detailed project IM (investment Memorandum) and CP (Corporate Profile) from the developer explaining the investment proposition including time frames & projected rates of return.
- Investors receive the IM, CP and meet the developer to finalise funding requirements and establish an investor relationship.
- Note equity investment carries capital risk and should only be considered by investors who understand development risks.
Who Can Invest?
All investors must be classified as a wholesale/sophisticated investor for the purposes of Chapter 7 of the Corporations Act including:
- An investment of $500,000 or more by any Australian resident or non-resident.
- Any business that is not considered a small business (less than 20 people).
- Professional & sophisticated investors
- An Australian financial services licensee
- A body regulated by APRA include banks, building societies, credit unions, and life and general insurers.
- A trustee of a superannuation fund
- An approved deposit fund,
- A pooled superannuation scheme
- A listed entity, or a related body corporate of a listed entity.