Landholding & Land-Bank Funding

Land is often the hardest asset for a bank to fund. A vacant or pre-approval site rarely produces rent, planning outcomes are uncertain, and the holding period can run well beyond a standard construction tenor. Australian private-credit lenders therefore treat land-bank facilities as a distinct product: first-mortgage debt sized to an independent valuation, with interest that can be prepaid or capitalised while the land is prepared for the next stage.

VERITAS HORIZON originates landholding and land-bank facilities for sponsors who already control — or are acquiring — a site with a credible path to value. Typical situations include residual land after a completed stage, a land bank assembled ahead of rezoning, or a holding period while a development application is prepared, lodged or determined.

Because the security is not yet income-producing, underwriting is conservative and transaction-specific. We focus on title, planning status, comparable sales, the quality of the sponsor, approved loan-to-value, and an exit that does not depend on an optimistic uplift: a refinance into construction debt, a sale of the site, or a later-stage facility once approvals are in hand.

Terms, leverage and interest are set deal by deal. We do not publish a standard land-bank rate card. What stays consistent is the structure: documented first-ranking mortgage security, defined covenants, and a holding plan that can be monitored through to exit.