Capital Fund

How It Works:

Capital Fund Finance

Capital Fund is a new and innovative way to finance environmental improvements to a building. It diversifies the capital stack – giving owners the ability to minimise risk and replace more expensive debt or equity. With Capital Fund, loan terms of up to 20 years are available.

Capital Fund is a form of Environmental Upgrade Finance, and can be used to bridge the gap between traditional bank debt and equity investment. Because repayments are made through council rates, it comes with very competitive rates and terms, reducing the overall cost of capital, increasing developer returns and means your building will be a better environmental performer than the competition.

With long dated loan terms, Capital Fund’s unique structure mean that the finance is secured by the land, not the owner, so that if the property is sold, the finance can stay with the property (along with all the project benefits) for the new owner to benefit from.

An example of how Capital Fund can work in construction finance:

*indicative interest rate. **net of upfront fees and charges

Capital Fund’s unique terms make it ideal for inclusion in major, transformational construction projects, such as building repositions, major refurbishments, retrofits and other significant projects that have an environmental upgrade component.

Benefits of Capital Fund

• Diversify your sources of capital
• Available for 100% environmental upgrade project costs – including hard, soft and auxiliary costs – of up to $20m
• Interest capitalisation available for up to two years
• Terms of up to 20 years
• Competitive fixed period interest rates with predictable repayments
• Repayments can be shared between landlords and tenants
• Can be transferred to new owner if property sold before facility repaid
• Often more affordable capital then most other equity and mezzanine debt within the capital stack
• Can be tailored to fit a bespoke financial structure