Construction Finance
Senior Debt,
Ring-Fenced Risk.
Provide construction finance to purpose-built SPVs with pre-committed 10-year government and employer leases. Fund equity sits subordinated below your senior position.
The Opportunity
A Growing National Pipeline
Australia's housing crisis is driving billions in committed government and employer spending. F2K connects this demand with private capital through ring-fenced SPV structures, each backed by pre-committed 10-year take-or-pay leases.
As an experienced construction lender, you benefit from a pipeline of repeat, standardised transactions — modular housing delivered in 14-16 weeks, with an experienced integrator managing the build and fund equity absorbing first-loss risk.
14-16wk
Factory to key delivery
10yr
Pre-committed lease terms
30-40%
Fund equity (first-loss)
12%
Integrator fee (GDV)
Deal Structure
Capital Stack
Every $1 of fund equity supports $2.50–$3.00 of total project value. Your senior debt is repaid first from asset sale proceeds.
Risk Mitigants
Six Layers of Protection
SPV Ring-Fencing
Each project sits in a separate SPV. No cross-collateralisation. Your exposure is project-specific, not fund-wide.
Pre-Committed Leases
Government departments and employers sign 10-year take-or-pay leases before construction begins. Income certainty from day one.
Fund Equity First-Loss
30-40% fund equity sits below your senior debt. This cushion absorbs cost overruns or value shortfalls before your position is affected.
Integrator Alignment
F2K earns its 12% fee only on successful delivery. The integrator's revenue is directly tied to project completion.
Fixed-Price Modular
Factory-built housing with fixed-price contracts reduces construction risk, weather delays, and labour shortages typical of site-built projects.
REIT Exit Pathway
Stabilised, lease-backed assets are sold to institutional investors. Senior debt is repaid first from sale proceeds.
Exit Path
Build → Stabilise → Sell → Repay
Construction (14-16 weeks)
Modular housing delivered from factory to site. Fixed-price, fixed-timeline.
Lease Stabilisation
Government or employer tenants move in under pre-committed 10-year leases.
REIT Sale
Stabilised, income-producing SPV is sold to a REIT or institutional long-hold investor.
Senior Debt Repaid First
Sale proceeds flow through the waterfall. Senior construction debt is repaid in priority before any equity distributions.
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