Why Private Credit is Reshaping Real Estate Finance in Australia
Filling the lending gap with flexible, fast capital solutions.
The Growing Gap in Real Estate Finance
Traditional lenders are stepping back—private credit is stepping up.
In recent years, Australian banks have tightened their lending criteria, particularly in construction finance, residual stock, and mid-sized development funding. This retrenchment, driven by APRA-imposed capital requirements and Basel III/IV regulations, has left a significant funding gap for developers.
This gap is most evident in:
- Projects without full pre-sales
- Loans requiring faster approval and settlement
- Borrowers seeking non-standard deal structures
- Developers operating in high-growth corridors but without institutional backing
According to RBA and CBRE insights, mid-sized developers face a $50–60 billion funding shortfall in Australia over the next five years. Private credit fills this void by providing fast, flexible, and responsive capital solutions.
The Ellerfield Advantage:
Flexible Lending with Institutional Rigor
Ellerfield Private Credit Fund is purpose-built for today’s development finance needs.
Unlike traditional lenders, our fund:
- Offers bespoke deal structuring that adapts to the project, not the other way around.
- Delivers rapid credit decisioning and funding via our experienced investment committee.
- Targets loan terms between 6 and 30 months—ideal for pre-construction, bridging, and residual stock needs.
- Developers operating in high-growth corridors but without institutional backing
We understand developers’ challenges from firsthand experience. Our credit philosophy focuses on assessing the project’s viability, the borrower’s track record, and the exit strategy—not just rigid serviceability ratios.
Why Developers Choose Private Credit
1. Speed to Capital
Bank loan approvals often take 8–12 weeks. Private credit transactions can be executed in under 4 weeks, enabling developers to secure sites, commence construction, or refinance residual stock without delay.
2. Structuring Flexibility
We design funding structures around each project’s lifecycle—whether that’s milestone-based drawdowns, interest capitalisation, or staged settlements.
3. Relationship-Driven
We work with borrowers as partners, not just lenders. This collaborative approach helps anticipate challenges early and keep projects on track.
4. Risk-Based Pricing, Not Bureaucracy
Pricing reflects the project’s LVR, stage, and developer capability—not an arbitrary credit score or blanket policy.
Ideal Use Cases for
Private Credit
Private credit is ideal for developers and sponsors who:
- Require quick acquisition or bridging finance
- Are completing projects without sufficient pre-sales
- Have stabilised assets requiring a refinance
- Need residual stock funding post-completion
- Are looking to stretch equity via higher LVRs (up to 70–75%)
Loan types funded include:
Construction loans
Residual stock loans
Bridging finance
Site acquisition loans
Refinancing and recapitalisation facilities
Stable Returns for Investors, Scalable Solutions for Borrowers
Ellerfield Private Credit is designed to balance the needs of both investors and developers.
For investors, it offers a secured, yield-generating investment backed by Australian real estate.
For developers, it offers a reliable capital partner with institutional discipline and entrepreneurial agility.
“Private credit is more than a lending product—it’s a strategic funding solution enabling Australia’s urban growth.”
Speak With Us
Whether you’re a developer seeking funding or an adviser representing high-net-worth clients, Ellerfield’s Private Credit team can help you unlock smarter, faster finance solutions.
Contact Us or submit a deal online to get started.