Doing that size development isn't just about financials - the lender needs to see that you have prior experience. The builder must be on the panel of the lender - you cannot just get any builder do to the build.
Also you are going to need presales - how many will be dependent on the lender and also a number of other things.
Here is a couple of things you will need:
Project Specific Information:
? Project Feasibility and Cashflow (ie: total project costings including land, construction, contingency, capitalisation of interest, council fees, professional fees, stamp duty etc)
? Resume/CV of the sponsors, specific to their development experience. Provide details of the last few projects (ie: address, description, Gross Realisation, Profit, cost/time to build ?if there were overruns, how were they managed)
? Resume/CV of the Builder, with emphasis on similar size/scope developments. Provide details of the last few projects (ie: address, description, Gross Realisation, cost/time to build ?if there were overruns, how were they managed)
? List of any other development projects either under construction or in the pipeline (including name of the funder and builder if applicable)
? Marketing Plans - if available
? Copy of any current pre-sales contracts - if available
? Copy of any Pre-Lease Agreement ? for Commercial/Retail/Industrial developments
? Any current valuation on the land or project (Wish List)
? Any current Quantity Surveyor's Report on the project (again, Wish List)
? Construction Certificate (CC) ? if available.
Development Finance Guidelines:
? If an external Builder is contracted (arm's-length) - The Bank will lend up to 80% of Direct Project Costs (DPC) ex GST and up to 65% of the Gross Realisation (ex GST), whichever is the lesser.
? If the borrower is an Owner Builder - The Bank will lend up to 75% of Direct Project Costs (DPC) ex GST and 60% of the Gross Realisation (GR) ex GST, whichever is the lesser. A contingency allowance of 10% is also factored in to the Bank's funding table.
? For Construct and Sell developments, a minimum of 50% of the proposed loan amount is to be covered by qualifying Net pre-sales (ie: net of GST and sales commissions) for loan amounts of less than $7,500,000.
? For Construct and Sell developments where the total lending amount is greater than $7,500,000, the Bank requires a minimum of 75% of the loan amount covered by qualifying Net pre-sales.
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? Initial Land Banking funding is usually restricted to 50% of the purchase For Commercial/Retail/Industrial developments, the Bank requires a minimum of 1.10 times hypothetical Interest Coverage of the loan amount from qualifying Committed Pre-Lease Net Rentals. price or valuation amount, whichever is the lesser. If there is already a DA in place, then we can look at funding up to 60% of the market value. Interest payments are to be met by the applicant/s until construction funding commences. Construction to commence in the short term - usually within 6 months.
? PROFIT - The minimum net development profit expected by the Bank on projects: Residential/Commercial/Industrial ? 15%, Land Subdivision - 20-25%.