Development Finance Strategies for Medium to Large Developers

Introduction to Non-Bank Financing

Welcome to our latest article where we delve into the intricacies of development finance, a crucial aspect for any developer aiming to navigate the ever-evolving property market. Hosted by The Urban Developer and supported by STAC Capital, this webinar explored the nuanced differences between bank and non-bank lenders, pricing strategies, and real-life case studies to arm developers with the knowledge to choose the right financial paths for their projects.

The Expertise of STAC Capital

STAC Capital, known for its adeptness in structuring complex property finances, has facilitated over 1 billion in deals, drawing from a robust network of 300 lenders. The insights from STAC’s managing directors, Mark Treynor and Dale Sparke, are particularly valuable for understanding the landscape of development finance.

Webinar Highlights

Differentiating Bank and Non-Bank Lenders

Understanding the core differences between these lenders is vital for developers. While banks offer lower rates, their stringent criteria and slower processes can impede the flexibility needed in today’s fast-paced market. In contrast, non-bank lenders provide quicker turnarounds and more flexible terms, albeit at higher costs.

Pricing Metrics and Structuring Options

The webinar provided an in-depth discussion on common pricing metrics used in the industry. The complexities of interest rates, line fees, and loan-to-cost ratios were unpacked, offering a clearer picture of how costs can significantly impact project viability.

Real-Life Applications

Through detailed case studies, the webinar illustrated how theoretical finance strategies are applied in real-world scenarios, both in residential and non-residential projects. These examples highlighted how different financing structures can be leveraged to optimise project outcomes.

Exploring Development Finance: A Webinar Overview

For developers looking to refine their financial strategies or for those venturing into new projects, understanding the detailed mechanics of development finance is indispensable.

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