Construction finance
A facility that finances the project during construction, drawn as the work progresses.
REAL ESTATE
Real estate financing for developers and investors
SBC helps developers and investors finance real estate: construction finance facilities for projects, equity completion and mezzanine, urban renewal, the purchase of income producing property and land, and international deals and financing through a partner network. We prepare the file and compare offers from several lenders. The lenders set the terms, and our fee is success based.
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A real estate project is financed in layers and in stages. Getting the order right, equity first, then the construction facility, with mezzanine where it fits, affects the cost and the pace of the project.
What we finance
Equity completion and mezzanine
When the developer’s equity does not cover what the lender requires.
Urban renewal
Financing for demolition and rebuilding and for strengthening projects.
Acquisitions
Income producing property, business premises and land.
International deals
Deals and financing abroad through a partner network, among others in Greece, Cyprus, Spain, Portugal, Italy, England, the United States and South Africa.
The financing stack of a project
The lender finances a share of the project cost; the rest is equity. Our real estate project calculator shows how the financing share, the equity and the expected sales fit together, as a first indication.
How we work with you
Diagnosis
The project, the numbers and the equity available.
Documents
Zero report, permits, budget, sales and the developer’s track record.
Submission and competition
The file goes to banks, insurers and non bank lenders that finance this kind of project.
Negotiation and closing
Comparing offers and negotiating the facility and the collateral.
Support after closing
Drawdowns, reporting and refinancing at completion.
What we need from you
- A feasibility study or zero report
- Land rights and permits
- Budget and timeline
- Presales, if any
- The developer’s previous projects
Calculator
Real estate project calculator: equity, financing and margin
The SBC real estate project calculator adds up the project cost and, at the financing share you enter, shows the financing needed, the equity required, any equity gap or surplus, and the expected profit and margin against sales. The lender sets the financing share and terms, and the result is an indication only.
An indication only, not an offer and not a commitment. Actual terms are set by the lender, based on the full file.
Planning, levies and fees, marketing, financing and supervision.
The share of the project cost a lender finances, as you estimate it or were offered. The lender sets it.
The result
- Financing needed
- ₪34,500,000Project cost: ₪46,000,000
- Equity gap
- ₪3,500,000
- Expected profit
- ₪12,000,00026.1% of cost, 20.7% of revenue
Project cost: ₪46,000,000. Financing needed: ₪34,500,000. Equity gap: ₪3,500,000. Expected profit: ₪12,000,000.
₪3,500,000 of equity is missing at this financing share. Equity completion, mezzanine or a partner, or another financing share, are worth checking.
Cost ₪46,000,000: Financing ₪34,500,000, Equity ₪8,000,000, Gap ₪3,500,000. Revenue ₪58,000,000.
Questions and answers
What is a construction finance facility?
A framework in which a bank or another lender finances a construction project and follows it until completion, with drawdowns tied to the progress of the work.
What is the difference between equity completion and mezzanine?
Both fill the gap between the developer’s equity and what the lender requires. They differ in structure, ranking and cost, and the right one depends on the project.
Does SBC finance the project?
No. SBC does not lend. We prepare the file, approach the lenders and help you choose.
Do you support deals and financing abroad?
Yes, through a partner network, among others in Greece, Cyprus, Spain, Portugal, Italy, England, the United States and South Africa. What is possible, and on what terms, depends on the country and the deal, and the lender decides.
Want to check this on your own numbers?
A first conversation and an initial review, at no cost. Our fee is success based.
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