Recently, the State Head of Corporate Property for a major bank told me they are proactively offering higher-leverage (70–75% LVR) construction funding to select clients.

Traditionally, private lenders have used 'uni-tranche' structures to deliver stretch leverage and terms on bank-like pricing through major bank collaboration.

Now, in some cases, banks are deciding two can play this game.

Strategically, it allows non-bank participation without letting non-banks control the borrower relationship.

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𝗨𝗻𝗶-𝘁𝗿𝗮𝗻𝗰𝗵𝗲 𝗹𝗼𝗮𝗻𝘀 𝟭𝟬𝟭
Rather than compete deal-by-deal, some banks and private lenders are teaming up to offer a single blended construction facility.

These structures typically feature:

 • one facility agreement
 • one mortgage on title 
 • an A-note held by a major bank (the first 60–65% of LVR)
 • a B-note held by a private lender (the last 5–15% LVR), internally subordinated

Because two parties share the stack, documentation, intercreditor terms and trust matter.

In a workout scenario, conflicts are usually the real risk, not the headline rate.

Historically, this has worked best where private-lender executives had strong relationships with bank credit teams.

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𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗱𝗲𝗳𝗲𝗻𝗰𝗲 𝗼𝗳 𝗺𝗮𝗿𝗸𝗲𝘁 𝘀𝗵𝗮𝗿𝗲
In 2025, banks began pricing aggressively to defend market share, alongside higher LVRs and lower, sometimes zero, presale requirements.

Taking the lead on uni-tranche origination is the logical and strategic next step.

In some cases, the bank identifies a sponsor needing stretch leverage, leads the process end to end, and then places the B-note with a private lender.

That gives the bank control of the borrower relationship and which private lender participates, while eliminating the borrower’s need to run a separate non-bank process.

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𝗞𝗲𝘆 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀
 1. Uni-tranche allows banks and non-banks to collaborate while still pricing different layers of risk.
 2. Since 2025, banks have progressively used price, risk, and now structure to defend market share.
 3. Uni-tranche loans provide developers with higher LVRs, lower presale hurdles, and blended pricing through one facility.
 4. Many developers are unaware these structures exist, or that banks may now lead them.
 5. Bank-led uni-tranche shows banks are becoming more strategic and more assertive in defending borrower relationships.

𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗲𝗿𝘀: have you seen uni-tranche loans offered on your projects, and were they led by a bank or a non-bank?

Developers wanting confidential benchmarking of current terms, or introductions to lenders and equity JV partners, are welcome to reach out. No exclusivity required.

#privatecredit #unitranche #constructionloans