Commercial construction finance covers the cost of building non-residential property - offices, retail premises, warehouses and mixed-use developments. The loan funds land acquisition where applicable, materials, labour, professional fees, and other project costs, with funds released progressively as construction milestones are reached and verified by quantity surveyor inspection.
Commercial construction sits in a different lending category from residential. The valuation methodology relies on capitalisation rates and projected rental yield rather than comparable sales, which makes risk-averse credit committees particularly conservative on LVRs and pre-lease thresholds. Traditional lenders often require signed lease agreements - sometimes covering 50% or more of the building's expected rental income - before settlement, which can stall projects that are otherwise feasible and well-located.
At CPF, commercial construction finance is asset-led. Assessment focuses on the site, the development approval, the builder, the projected GRV based on completed value, and a credible exit strategy - typically a refinance to a long-term commercial mortgage on completion, an asset sale, or a progression to a CPF residual stock loan if the building is held for staged lease-up. Pre-leases help the assessment but are not a hard gate. Loans are available to individual, company, and trust borrowers, including SPVs structured for a single project.
Up to
65% GRV (up to 75% with second mortgage) Low or
no pre-leases or pre-sale required Funds
office, retail and mixed-use construction
Capitalised interest - no monthly debt servicing during the build
Staged
drawdowns aligned with construction milestones
Funding available for partially completed projects mid-build
Takeout funding available on completed projects No
brokerage clawbacks - broker commissions stay paid
Build warehouses, distribution facilities, and unit complexes - funded against projected end value.
Office buildings and strata-titled complexes developed for sale or lease - assessed on the merits of location and end-product
Strip retail, retail centres, and buildings combining ground-floor commercial with residential or office above.
Medical centres, childcare facilities, automotive premises, and other specialty commercial assets.
Submit your project for assessment or speak with our team about commercial construction finance.
Funding solutions designed for property developers, investors, and brokers across Australia.
