Unlocking Potential: Private Credit for Real Estate Developers

At Ark Capital, we have seen firsthand how private real estate debt unlocks opportunities that conventional lenders often overlook. Unlike many private credit funds, we pride ourselves on being more nimble, with faster decision-making processes that enable developers to act with confidence. Based on my experience, here are four reasons why private real estate debt could be the right choice for your next project. 

One of the key advantages of private credit is its ability to offer tailored solutions. Traditional banks impose rigid lending criteria, often limiting developers ability to structure deals that reflect the specific nuances of their projects. Private credit providers, in contrast, customise loan terms, repayment schedules, and covenants, ensuring funding solutions that align with project-specific needs. 

In real estate, timing is everything. Lengthy approval processes can derail promising opportunities, particularly in competitive markets. Private credit funds, particularly Ark Capital, operate with streamlined decision-making and a hands-on approach, enabling developers to secure funding in weeks rather than months. This certainty allows developers to move quickly on acquisitions and execute their projects with confidence. 

Private real estate debt often provides higher leverage than traditional banks, financing up to 75-85% of a project’s total development cost. This reduces the equity contribution required from developers, ultimately enhancing returns. For those developers looking to scale or diversify their portfolios, this level of funding flexibility can be a significant advantage. 

Regulatory constraints have led many banks to retreat from real estate lending, particularly in more complex or non-standard projects. Private credit fills this gap by  financing projects that, while strong in fundamentals and return potential, may not meet traditional bank risk models. 

With the Australian property market remaining dynamic, access to fast, flexible capital will be crucial to driving growth. As traditional lenders remain cautious, private real estate debt is not just an alternative, it is a strategic advantage for ambitious developers. 

At Ark Capital, we pride ourselves on our ability to move quickly and decisively, providing developers with certainty and speed when it matters most. If you’re looking for a funding partner who understands real estate and can adapt to market demands, let’s connect or read up on our lending solutions here.