Commercial Development Loans
Selective senior debt for commercial real estate where income, value-add or a documented lease-up can support a first-mortgage facility through to refinance or sale.
Overview
Commercial development credit is underwritten on a different set of facts from housing. Tenants, lease terms, specialised use and the depth of the investment-sale market matter as much as build cost. Australian private-credit managers therefore treat commercial facilities as deal-specific senior debt: first-mortgage security, a tested feasibility, and an exit through refinance, lease-up or asset sale.
VERITAS HORIZON considers selective commercial development loans across income-producing or value-add real estate — including industrial, retail, mixed-use and other commercial formats where the sponsor can evidence demand. The facility may sit at land, construction or completed-asset stage, provided the security and the take-out can be documented.
We do not write commercial credit from a published leverage or rate schedule. Each facility is sized to independent valuation, the proposed mortgage priority, lease or pre-commitment evidence, cost-to-complete and the sponsor's capacity to support a slower lease-up. Covenants and reporting are set so that income, security and default rights remain visible after settlement.
The same discipline applies at exit. A commercial facility is only advanced when there is a realistic path to repay — a refinance of the completed and leased asset, a sale to an investor, or another documented take-out that does not rely on an untested market bounce.
Product focus
Selective commercial real estate
Typical security
First mortgage over the asset
Underwriting lens
Income, use and lease-up
Exit focus
Refinance or investment sale
Uses
What this facility can fund
- Construction or substantial value-add works on industrial, retail, mixed-use or other commercial assets
- Refinance of land or an existing commercial facility into a development or repositioning loan
- Completed-asset or residual-stock funding while lease-up or an investment sale is completed
- Selective acquisition or hold funding where the security is commercial real estate with a defined take-out
Sponsors
Who this is for
- Developers and asset owners with experience in a comparable commercial use and market
- Sponsors who can evidence tenant demand, pre-commitments or a credible lease-up plan
- Borrowers needing senior-secured private credit where bank commercial terms do not fit the programme
- Owners of completed commercial stock who need time to lease, refinance or sell to an investor
Underwriting
How we assess a commercial facility
- Use class, location, comparable rents or sales, and the depth of occupier and investor demand
- Approvals, works programme, cost-to-complete and the specialised risks of the asset type
- Lease terms, pre-commitments, vacancy and the quality of any existing income
- Independent valuation, mortgage priority and approved loan-to-value or loan-to-cost
- Sponsor equity, guarantees and capacity to support a slower lease-up or cost movement
- Exit via refinance of a leased asset, investment sale or another documented take-out
From enquiry to funding
Step 1
Asset and purpose briefing
We review the asset, proposed works, income or lease-up plan, security and the intended exit.
Step 2
Feasibility and income review
Costs, leverage, tenant evidence and take-out options are tested before terms are discussed in detail.
Step 3
Valuation and due diligence
Independent valuation, legal title and credit work are completed on the asset and the sponsor.
Step 4
Credit approval and terms
Facility size, covenants, reporting and conditions precedent are confirmed in writing.
Step 5
Documentation and security
Loan, guarantee and mortgage documents are executed and first-ranking security is registered.
Step 6
Funding and asset monitoring
Drawdowns follow the approved programme, with monitoring of works, income and the exit plan.
Other services
View allServices
Investor Solutions
Eligible wholesale investors can access selected Australian private credit opportunities secured by tangible property and documented first-ranking mortgages.
Services
Borrower Solutions
Clear, structured and property-backed private credit for borrowers and funding partners, underwritten transaction by transaction in Australia.
Services
Landholding & Land-Bank Funding
Senior-secured funding for landholders who need time to plan, rezone, consolidate or wait for a development approval — without forcing a sale of the site.
Services
Residential Development Loans
Selective senior debt for residential projects that can be underwritten on feasibility, security and a documented path from construction to sale or refinance.
Services
Residual Stock Funding
Senior-secured funding against completed but unsold stock, so a construction facility can be repaid without forcing a discounted clearance.
Eligibility
Discuss this facility
Commercial development loans are subject to credit approval, satisfactory feasibility and due diligence, documented security and a defined refinance or sale exit. Terms are set transaction by transaction.
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