What is commercial property finance?
Commercial property finance is a form of lending used to fund the construction, development, acquisition, or renovation of commercial real estate. This includes office buildings, retail and shopping centres, industrial and warehouse premises, mixed-use developments, hospitality and accommodation properties, and commercial fit-outs and renovations.
Granor Capital provides non-bank commercial property finance across Australia, with loan sizes from $200,000 to $20,000,000 and terms typically between 12 and 24 months.
What types of commercial property does Granor Capital finance?
Granor Capital lends on a range of commercial property types including office developments and fit-outs, retail premises and shopping centres, industrial and warehouse projects, mixed-use developments combining commercial and residential elements, hospitality and accommodation properties, and commercial renovations and adaptive reuse projects. Each application is assessed on the merits of the individual project and the quality of the underlying security.
How Granor Capital assesses commercial property finance
Commercial property finance applications are assessed using the same disciplined credit criteria applied to all Granor Capital lending. For commercial projects, additional considerations include the tenant covenant and lease analysis where the property is income-producing, the commercial valuation methodology appropriate to the property type, the cash flow and serviceability assessment including net operating income projections, and the borrower’s experience with commercial property development or investment.
Independent valuations are obtained on all security properties, and loan-to-value ratios are assessed conservatively. For development projects, valuations are conducted on both an “as is” and “as if complete” basis.
Commercial property loan parameters
Loan sizes range from $200,000 to $20,000,000. Terms are typically 12 to 24 months. Loan-to-value ratios are available up to 80 per cent. Security is provided by a first registered mortgage over Australian real property. All loans are subject to documented credit assessment with independent valuations and active monitoring.
What LVR is available for commercial property loans?
Granor Capital offers commercial property loans with LVRs of up to 80 per cent, depending on the property type, location, and risk profile. Income-producing commercial properties with strong tenant covenants may attract higher LVRs than development sites. All LVRs are assessed using independent valuations prepared by certified practising valuers.
Do you finance owner-occupied commercial property?
Granor Capital primarily provides short-term development and construction finance rather than long-term owner-occupied commercial mortgages. However, we may consider short-term lending secured by owner-occupied commercial property where there is a clear exit strategy, such as refinancing to a longer-term facility or sale.
What commercial property types does Granor Capital lend on?
We lend on most commercial property types across Australia, including office, retail, industrial, mixed-use, and hospitality. The key assessment factors are the quality and location of the security property, the feasibility of the proposed project, and the borrower’s capacity to deliver on the business plan.
How is commercial property valued for lending purposes?
Commercial property valuations are prepared by independent certified practising valuers using methodologies appropriate to the property type. These may include the capitalisation approach based on net operating income and market yield, the direct comparison approach based on comparable sales evidence, the discounted cash flow approach for income-producing properties with complex lease structures, and the residual or hypothetical development approach for development sites.
Contact Granor Capital to discuss commercial property finance.
Related: Lending services | Property development finance | Construction loans Brisbane
This page is for general information only and does not constitute financial advice.