Singapore company financing a Brisbane development site

The situation

The following is an anonymised composite reflecting a recurring pattern, not a specific settled deal. A Singapore-registered property company, with an established track record developing projects in Southeast Asia, identifies a development site in Brisbane and wants to finance both the acquisition and the subsequent construction through an Australian lender, rather than funding the whole project from its own balance sheet.

Why it's hard

As a foreign company, the acquisition requires FIRB approval, adding a process and timeline that must be coordinated alongside the finance itself, and most Australian banks are more conservative assessing a foreign corporate borrower with no established local trading history, even where the group's overseas track record is strong.⚠ Verifying the group's financials, sourced from a different jurisdiction and accounting framework, also takes longer than a straightforward domestic file.

How it can be structured

A construction facility from a specialist fund or private lender experienced with foreign corporate borrowers is the standard path, secured by a first mortgage over the site and a general security agreement over the Australian development entity, generally established as a local special purpose vehicle for the project; the exit is the sale or lease-up of the completed project. FIRB approval is typically pursued in parallel with finance due diligence, since both processes run on their own timelines and holding the site while awaiting either can be costly if not planned for jointly. Where the group can demonstrate a strong track record through documented project history and audited financials, even without prior Australian trading, this materially improves the panel of lenders willing to engage and the terms available.

Australian lenders assessing a Singapore-registered corporate borrower will typically want the group's financial statements translated and, where the accounting framework differs materially from Australian standards, reconciled or explained by the group's own accountants, since an unfamiliar reporting format can otherwise slow assessment considerably. Establishing a local Australian special purpose vehicle to hold the project, with clear lines of authority and a local director or representative empowered to execute documents, is standard practice and something lenders will want confirmed early rather than treated as a closing formality. Where the group has completed projects in other jurisdictions of a broadly comparable scale and complexity, presenting that track record with supporting evidence, including completion certificates, sales records, or third-party project reports, helps substitute for the absence of a specifically Australian track record. Because FIRB conditions can include requirements around construction commencement timeframes, coordinating the FIRB application closely with the construction finance timeline avoids a scenario where approval conditions and the practical construction schedule pull in different directions.

What it typically costs

Pricing reflects the additional due diligence involved in assessing a foreign corporate borrower without local trading history, generally above the terms available to an equivalent Australian developer, quoted on enquiry once a lender has reviewed the group's financials and the project feasibility. Costs include standard construction finance fees alongside the additional legal and FIRB-related costs specific to a foreign acquisition.

Timeline

1. Same day — scoping call confirming the group's structure, track record and the project.
2. 10–15 business days — FIRB application lodgement and financial due diligence, run in parallel.
3. 10–20 business days — lender matching, feasibility review and credit approval.
4. 10–15 business days — documentation and settlement, sequenced around FIRB approval being confirmed.

Questions we'd ask you

1. What is the group's development track record, and can audited financials be provided?
2. Has FIRB approval been lodged, and what is the expected timeline?
3. What local Australian entity or special purpose vehicle will hold the project?
4. What proportion of the project's total cost will the group fund from its own balance sheet?
5. Does the group have, or plan to establish, any local Australian presence or advisers for the project?

Related

Foreign investor loans · Construction finance · Foreign investors · FIRB