GATE+ Industrial Loan Information

Financing a GATE+ Unit

An industrial facility is assessed differently from the lending most buyers have met before. There is no regulatory cap on the loan-to-value for a purchase at GATE+; each bank sets its own limit, and the single largest factor is what the unit will be used for. A company buying to occupy the space is treated most favourably, because the lender is lending against a business that will occupy and maintain the premises.

Three further points shape what is available: the development is under construction, which caps the practical loan-to-value at purchase; a number of banks prefer a corporate borrower for B1 and B2 units; and CPF cannot be applied to an industrial purchase at all. Each is set out below. The instalment timing these figures attach to is on the GATE+ payment scheme page, and the purchase calculator models the three loan-to-value levels side by side.

80% Is the Practical Ceiling at Purchase

The 90% figure describes a completed unit. At GATE+ the first 20% falls due across the eight-week option period, before the bank disburses anything at all, so 80% is the practical maximum a buyer can work to at the point of purchase. A facility written above that level draws the excess at completion of the sale, once the mortgage is in place — the schedule governs what is owed to the developer at each stage, not who supplies the funds.

The consequence for cash planning is straightforward: the option period is funded by the buyer whatever the headline loan-to-value, and GST on those instalments is payable in cash on top. The GATE+ purchase calculator shows 70%, 80% and 90% side by side so the difference in cash upfront is visible before a bank is approached.

Who the Bank Will Lend To

This is worth establishing early, because it affects whether a facility is offered at all rather than merely on what terms. A number of banks prefer not to extend a facility to an individual purchaser of a B1 or B2 industrial unit, and will look for the purchase to be made through a company — frequently an investment-holding company formed for the purpose. A buyer intending to purchase personally should confirm the bank’s position before exercising the option.

The debt-servicing assessment follows from that choice. The Total Debt Servicing Ratio framework applies to an individual borrower, including a sole proprietor and an individual who forms a company solely to make the purchase. A company borrowing in its own right is assessed on its financials instead — turnover, profitability and the strength of the covenant.

Tenure, Lease and Funding

• CPF cannot be used. An industrial purchase is funded by cash and a bank facility. The GST at each instalment is cash as well, since banks do not finance it.
• Loan tenure commonly runs to 25 or 30 years, subject to the bank’s policy and the borrower’s profile.
• The lease caps the tenure. A leasehold property has its loan tenure trimmed against the remaining lease, typically by five to ten years. GATE+ holds a 33-year lease commencing 27 August 2025, which gives the facility a longer runway than the 30-year tenures common in the precinct — three additional years of lease is three additional years of financeable and saleable life.
• Rate is quoted by the bank and moves with the market. Check the rate that applies after the lock-in ends, not only the headline rate.