Most of us have been taught that low interest rates are always better. So, it might sound surprising to hear that some of Adelaide’s most successful property developers are choosing to pay more.
But here’s the twist. It’s actually saving them money in the long run.
Rather than wait months for banks to approve a loan with strict rules and red tape, these developers are teaming up with boutique lender Capital Property Funds to move faster, stay in control, and get their projects off the ground sooner.
The result? They’re finishing quicker, selling earlier, and walking away with more in their pocket.
“It’s not that they can’t borrow from the banks,” says the team at Capital Property Funds, or CPF for short.
“It’s that they don’t want to be slowed down by them. Our clients are too savvy to be limited by rigid banking parameters. They choose to work with us because they can get on with building their businesses.”
CPF works with experienced developers who want flexibility and speed. They’re not the kind of lender that just signs the cheque and disappears.
“We’re involved in regular site calls, we help solve problems early, and we remain available throughout the life of the loan,” the team explains.
“We even add what we call credit enhancement strategies where we see fit. That might mean bringing in our own developer, or even stepping in to finish the project if needed.”
That hands-on approach is part of why developers keep coming back. And yes, the interest rates are higher, but that’s part of the plan.
“For many developers, speed and certainty of funding far outweigh the marginal difference in interest rates,” they say.
“A delay from a traditional lender can cost more in holding costs or missed opportunities than the interest difference with us.”
One of the big advantages is flexibility around pre-sales.
“Traditional lenders often impose rigid pre-sale requirements, which can stall a viable project,” the team says.
“If we believe in the deal, we don’t need to wait. That means our borrowers can launch construction earlier, bring stock to market faster, and sell it down much quicker.”
The boutique model isn’t just good for developers. Investors are also taking notice. CPF offers a return of 10.00% p.a., paid quarterly, which is especially appealing in a low-interest climate.
“We tend to attract investors who are looking for reliable, property-backed income without the volatility of shares,” the team says.
“Many of our investors use their SMSFs and appreciate the transparency, the quarterly income, and the straightforward security.”
It’s that clear and collaborative approach that sets CPF apart.
“We hear two things consistently: we’re responsive and we understand development. Borrowers love that we move quickly and give them a firm answer early. Investors value our transparency and track record.”
One standout example? A developer who ran into trouble when a newly built road subsided after a storm.
“They had followed the council specs exactly,” the CPF team explains.
“We didn’t penalise them. We extended the loan, and our investors actually earned extra income from that extension. That partnership mentality is why they’re still with us today.”
If you want to find out more, Capital Property Funds is hosting an upcoming investor webinar that offers a peek inside their active loan book.
“We’ll walk through current projects, update everyone on progress, and look at new opportunities. If you’re looking for income backed by property, it’s worth tuning in.”
Capital Property Funds
For more information, click here.
Private Credit vs Private Real Estate – Key Considerations for Investors Webinar
Wednesday, 1 October 2025 | 4pm – 5pm
Join Executive Director Joe Christie and the Capital Property Funds team for an exclusive complimentary session for sophisticated and institutional investors. Learn the key differences between two major categories of private credit, how they impact risk and recovery, and what that means for portfolio resilience. Whether you’re new to property debt funds or looking to diversify, you’ll gain practical insights and have the chance to engage directly with the Capital Property Funds team.
To book your complimentary tickets, click here.
Past performance is not indicative of future performance. The distributions and investment returns depend on the performance of the underlying investments. Information contained within this article does not constitute financial advice, nor is it a personal recommendation. Information contained within this article is general in nature and has been prepared without regard to the individual objectives, financial situation, or requirements of any person. Prospective investors should seek personal financial and legal advice before deciding to invest.
