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:
Equity
20% p.a.
Construction Debt
6% p.a.
Traditional
WACC 11.6%*
Equity
20% p.a.
Capital Fund 6.5% p.a.*
Construction Debt
6% p.a.
Capital Fund
WACC 10.3%**
*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.
Capital Fund can be used for projects including office, retail, healthcare, industrial, manufacturing, hotels, cold stores, specialised manufacturing, sporting and more.
Eligible works can include anything that has an environmental benefit such as energy efficiency, solar, base building(insulation, windows etc) water efficiency, water harvesting and waste minimisation
Find out if you qualify for an environmental upgrade finance agreement. Complete the form below.
"EUAs provide a low-cost capital option."
"When completing a major building refurbishment, reposition, or extension, using Sustainable Australia Fund’s Capital Fund is a smart inclusion in the capital stack. As it’s repaid through Council rates, there’s a number of ways it can substantially improve your returns, both short and long term. Combined with senior debt, it removes the need to compromise on ESD initiatives that will ultimately result in a better performing building."
Our finance is currently enabled in Victoria, New South Wales and South Australia. Look up your address
to see if it's available to businesses in your council area.
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