Private Commercial Real Estate Lenders: CRE Directory

Q: What is the maximum LVR for private commercial loans?

Typically, private lenders will lend up to 65 70% of the property's value (LVR). For construction loans, this might be based on the "on completion" value (GRV), often capped at 65%.

Guide information. Written by Daniel. Published: 25 November 2025. Reviewed: 15 May 2026.

In the evolving landscape of Australian property finance, private commercial real estate lenders have become a critical source of capital for borrowers who need speed, flexibility, or solutions outside the rigid criteria of traditional banks. Whether you are a developer seeking construction finance, an investor needing a quick settlement, or a business owner looking to leverage equity, understanding the private lending market is essential.

Navigating the private lending market can be daunting. It is a fragmented sector comprising high-net-worth individuals, family offices, and specialised private debt funds, each with their own risk appetites and lending parameters. There is no single "directory" that lists every player, but understanding the categories of lenders and how they operate is the key to unlocking this capital. This guide serves as your roadmap to the private CRE lending ecosystem in Australia. We will explore who these lenders are, what they look for in a deal, and how to identify the right partner for your specific commercial property needs, ensuring you have the funding to move your projects forward.

📖 Series Context: This guide is part of our Private Lending series. For a complete overview, see our What is Private Lending? Guide.

At a Glance


Who this guide is for	Commercial property investors seeking specialist lenders
What it addresses	Directory of private lenders specialising in CRE
When this is appropriate	When financing commercial property outside bank criteria
When it's NOT appropriate	For standard commercial property eligible for bank funding

The Role of Private Lenders in Australian CRE

Private lenders play a critical role in filling the funding gap left by traditional institutions. Following the Global Financial Crisis and subsequent regulatory tightening, major banks retreated from certain segments of the commercial market, particularly construction finance and specialised asset lending. Private capital stepped in to meet this demand, and today, it is a mainstream source of funding for projects ranging from boutique apartment developments to large-scale industrial acquisitions. Their primary value proposition is speed and solution-oriented thinking.

For developers, private lenders are often the difference between a project starting on time or stalling in the planning phase. Banks typically require a high level of pre-sales (often 100% of debt cover) before releasing construction funds. Private lenders, however, may accept lower or even zero pre-sales if the project fundamentals and location are strong. This allows developers to commence construction sooner, reducing holding costs and bringing the product to market faster—a significant advantage in a cycle where construction costs are rising.

Investors also benefit from private CRE lending, particularly for "value-add" opportunities. If you are purchasing a vacant office building to refurbish and re-lease, a bank might view the lack of current income as a deal-breaker. A private lender will look at the "as-complete" value and the potential rental yield, providing the bridge capital needed to execute the strategy. Once the asset is stabilised and income-producing, the borrower can then refinance to a lower-rate bank loan. In this way, private lending acts as a catalyst for value creation in the commercial property sector.

Types of Private CRE Lenders

The term "private lender" covers a broad spectrum of financiers, each with distinct characteristics. At the smaller end of the scale are High-Net-Worth Individuals (HNWIs). These are often successful business people or retirees looking for a better return on their cash than a term deposit. They typically lend their own money on a deal-by-deal basis. While they can be incredibly fast and flexible, their capital is limited, and they may lack the infrastructure to manage complex construction drawdowns. They are often best suited for short-term bridging loans or smaller commercial purchases.

Moving up the chain, we find Family Offices. These entities manage the wealth of ultra-high-net-worth families and often have significant allocations to private credit. Family offices can write larger cheques, often from $5 million to $50 million+, and can take a longer-term view than individual investors. They are sophisticated counterparties who can structure complex deals, including mezzanine debt or preferred equity. Their decision-making is usually centralised and swift, making them attractive partners for mid-market developers and investors.

At the institutional end are Private Debt Funds and Mortgage Trusts. These are professional investment management firms that pool capital from wholesale investors to lend out. They operate with rigorous credit policies and investment committees, similar to a bank but with a higher risk tolerance and faster execution. They offer the greatest reliability of funding, as they have committed capital to deploy. For large-scale commercial projects requiring $20 million to 00 million+, these funds are often the primary alternative to the major banks.

Lending Criteria and Borrower Requirements

While private lenders are more flexible than banks, they are not reckless. Their underwriting focuses heavily on the "4 Cs": Character, Collateral, Capacity, and Capital. Collateral (the security property) is paramount. Private lenders are asset-backed lenders; they need to know that if everything goes wrong, the property sale will cover their principal and interest. They will scrutinise the valuation, location, and liquidity of the asset. A prime asset in a capital city will attract more lenders and better terms than a specialised asset in a regional town.

Exit Strategy is the next critical criterion. Unlike a 30-year home loan, private CRE loans are short-term (usually 6-24 months). The lender needs a clear, viable plan for how they will be repaid. Is it through the sale of the developed units? Refinancing to a bank once the lease is signed? Sale of another asset? A vague exit strategy is the quickest way to get a decline. Borrowers must demonstrate that the exit is realistic within the loan term, including buffers for potential delays.

Character refers to the borrower's track record and integrity. Private lenders back people as much as projects. They want to see that you have experience in the type of project you are undertaking. If you are a first-time developer, you may need to partner with an experienced project manager or builder to get approved. Finally, Capital—or "skin in the game"—is essential. Lenders want to see that you have your own equity at risk. A borrower with significant cash invested is less likely to walk away when challenges arise.

Navigating the Private Lender Directory

Finding the right private lender is not as simple as Googling "private lender." The market is opaque, and many of the best sources of capital do not advertise. They rely on a network of trusted intermediaries to bring them qualified deal flow. This is where experienced finance brokers become invaluable. A broker acts as a living directory, knowing which lenders are currently active, what their sweet spots are, and who has capital ready to deploy. They can match your specific project needs with the lender most likely to approve it.

When searching for a lender, look for specialisation. Some private lenders only fund residential construction; others prefer income-producing industrial assets. Pitching a hotel development to a lender who only understands retail is a waste of time. Your broker will help filter the market, presenting your deal only to those with a mandate for your asset class. This targeted approach saves time and protects your credit footprint from multiple unnecessary inquiries.

It is also important to verify the lender's reputation. In an unregulated commercial market, transparency varies. Ask for references or examples of past deals they have funded. A reputable private lender will be transparent about their fees, process, and source of funds. Be wary of lenders who ask for large upfront "due diligence" fees before issuing a term sheet. Legitimate lenders typically only charge valuation and legal fees at cost, with their establishment fee payable upon successful settlement.

Risks and Mitigation Strategies

Private lending comes with higher costs and risks that must be managed. The most obvious is the interest rate risk. Private loans are more expensive than bank loans, often ranging from 8% to 12%+ per annum. If a project runs over time, these costs can erode profit margins quickly. To mitigate this, ensure your feasibility study includes a healthy contingency for finance costs. Negotiate a loan term that is longer than you think you need—it is cheaper to pay for a longer term upfront than to pay extension fees later.

Refinance risk is another major consideration. If your exit strategy is to refinance to a bank, you are betting that your financial position and the market value of the asset will meet the bank's criteria at the end of the private loan term. If property values fall or interest rates rise significantly, you might find yourself unable to refinance. To mitigate this, aim for a lower Loan-to-Value Ratio (LVR) on the private loan to leave equity buffer, and start the refinance process well before the private loan expires.

Lender stability risk is less common but possible. If a small private lender runs into liquidity issues, they might not be able to fund progress draws on a construction loan. This can be catastrophic for a project. Mitigate this by dealing with established private debt funds or family offices with a proven track record and committed capital, rather than individual lenders who might be relying on a single source of wealth. Your broker can advise on the stability and reputation of the lender.

How to Choose the Right Private Partner

Selecting a private lender is a strategic partnership decision. Beyond the interest rate, consider the "commerciality" of the lender. Will they work with you if you hit a snag, or will they immediately issue a default notice? A good private lender understands that development is messy and will take a pragmatic approach to solving problems. Look for a lender who asks intelligent questions about the project risks and shows an understanding of your business plan.

Flexibility is a key differentiator. Can the lender move as fast as you need? If you have an auction deadline in two weeks, you need a lender with a streamlined credit process, not a committee that meets once a month. Ask about their settlement timeframes and what their requirements are for valuation. Some lenders can lend against a "restricted" valuation or even a desktop assessment for lower LVRs, which speeds up the process significantly.

Finally, consider the total cost of funds, not just the interest rate. Compare the establishment fees, line fees, and exit fees. Some lenders might offer a lower headline rate but charge higher fees, making the overall cost higher. Discuss their fee structure upfront—brokers may receive commission from lenders, charge fees directly to clients, or use a combination of both models. Transparency at the outset prevents nasty surprises at settlement. A trusted broker will help you compare these "apples to oranges" offers to find the true best deal for your project.

Frequently Asked Questions

Are private lenders regulated in Australia?

Commercial lending to companies is largely unregulated under the National Consumer Credit Protection Act. However, lenders must still comply with general commercial laws and ASIC regulations regarding financial products.

What is the maximum LVR for private commercial loans?

Typically, private lenders will lend up to 65-70% of the property's value (LVR). For construction loans, this might be based on the "on-completion" value (GRV), often capped at 65%.

How fast can a private lender settle a loan?

Speed is a major advantage. Many private lenders can issue a term sheet in 24 hours and settle within 3 to 5 business days, provided the valuation and legal documents are in order.

Do private lenders require tax returns?

Often, no. Private lenders focus on the asset and the exit strategy. "Low-doc" or "no-doc" loans are common, where income verification is not required, unlike traditional bank loans.

Can I use a private lender for a second mortgage?

Yes, many private lenders specialise in second mortgages. These sit behind your first mortgage and allow you to release equity, though they come with higher interest rates due to the increased risk.

What happens if I can't repay the loan at the end of the term?

If you cannot repay, the lender may grant an extension (usually for a fee) or, in a worst-case scenario, enforce their security and sell the property. Communication is key if you foresee delays.

Conclusion

The landscape of private commercial real estate lenders in Australia is vast and varied, offering a lifeline of capital for projects that don't fit the traditional banking mould. From agile high-net-worth individuals to robust institutional debt funds, there is a private capital solution for almost every viable commercial property scenario. The key to success lies in understanding your own needs, presenting a compelling exit strategy, and partnering with the right lender who aligns with your project goals.

While the costs are higher, the strategic value of speed, flexibility, and higher leverage often outweighs the expense. By leveraging the expertise of experienced finance brokers and conducting thorough due diligence, you can navigate this directory of lenders with confidence. In a market where opportunity waits for no one, having a reliable private lending partner is a powerful competitive advantage.

This article provides general information only and should not be considered financial advice. Consult with a licensed finance professional for advice specific to your circumstances.

Written by the expert team at Emet Capital, experienced finance brokers specialising in commercial property and business lending across Australia.