Construction Finance.
Navigating the world of construction is an endeavour of both passion and precision.
At Fortis Capital, we streamline this journey for you, offering a wealth of expertise in construction finance in NZ. From residential terraced house developments to commercial and large scale Hotel developments, we have a deep understanding of what it takes to drive a project to completion.
Why Fortis Capital is Your Premier Choice for Construction Finance:
Nationwide Expertise: Specialists in providing construction finance across New Zealand.
Tailored Solutions: We understand the construction lifecycle and can provide construction finance solutions that are tailored to your project.
Firsthand Industry Experience: Our directors have been leaders in the construction finance market for over 30 years and bring invaluable insights and knowledge to the table.
Transparent and Trustworthy: At Fortis Capital, transparency is a principle we're founded upon and something we take very seriously.
What is Hotel Construction Finance?
Hotel construction financing pertains specifically to the funds acquired for the construction of new hotels or the extensive renovation of existing ones. Unlike standard construction finance, it accounts for the unique challenges and opportunities presented by the accomodation sector and ultimately the ability for the Hotel to generate income as a going concern.
Hotel construction financing, in particular, is a nuanced domain that demands a unique blend of expertise and insight. At Fortis Capital, we're here to shed light on this intricate world and guide you seamlessly through it.
Understanding Hotel Construction Financing:
Navigating hotel construction financing requires a specialized understanding of the industry's complexities. Factors such as tourism market trends, operational costs, and revenue projections play a pivotal role in securing the right financing for a hotel project.
Key Components of Hotel Construction Financing:
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A thorough analysis of the project's feasibility is conducted. This firstly takes into account your typical development finance criteria and then factors such as the hotel management team, hotel occupancy agreement, projected occupancy/room rates, local competition, and the overarching trends in the hospitality industry.
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Given the complexity of hotel projects, financial structuring often involves a mix of debt, equity, and sometimes even mezzanine financing. Careful consideration into the ‘trading up’ period on completion is also considered with provision for capitalised interest usually provided.
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The funds are not disbursed in one go but are usually released as per the construction milestones on a cost to complete basis certified by a Lender appointed Quantity Surveyor.
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Given the substantial sums involved and the longer-term nature of hotel returns, lenders often look for a clear exit strategy. This could be through the hotel's sale, refinancing, or from its operational revenues once it becomes fully functional.
Our Specialist Services
Development Finance
Residential multi-unit, standalone houses and commercial/mixed use development solutions are at the core of our business.
Land Development Finance
If your goal is to purchase and subdivide raw land into plots for sale, our land development finance solutions have got you covered.
Land Acquisition Finance
We understand the pivotal role that land plays in any development project and we remove the obstabcles often faced when securing finance.