Background
Development Finance Partners (DFP) was engaged by a client seeking to acquire a vacant residential development site located in the South Western Sydney Growth Corridor. The site, strategically positioned in a high-growth area, was under contract with a pending Development Application (DA) for a 28-lot subdivision.
The client had originally secured the site under a 12-month option agreement. However, this had converted to a time-of-the-essence contract, creating urgency to settle within eight weeks and secure finance quickly and on favourable terms.
Project Overview
The development site held strong long-term value, with a DA pending for a 28-lot residential subdivision. The client sought to capitalise on recent surrounding market uplift, which they believed justified a higher loan-to-purchase ratio than traditionally accepted.
To avoid injecting further equity, the client required funding for 90% of the purchase price, backed by a valuation uplift and potential DA approval.
Key Metrics
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Loan Amount: $4,970,000
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Loan Type: Site Acquisition
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LVR: 65% of 'as-is' valuation
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Funding: 90% of purchase price
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Location: South West Sydney Growth Corridor, NSW
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Security: Vacant development site (DA pending at application, approved by settlement)
The Challenge
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The site was under urgent settlement conditions, requiring funding within eight weeks
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The client needed 90% of the purchase price, above typical lender thresholds
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The DA had not yet been approved at the time of finance submission, creating uncertainty
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A valuation was needed to support both 'as is' and DA-approved value
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Lenders had to be comfortable with the timing and planning conditions
DFP’s Strategic Solution
DFP managed the full funding process by:
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Commissioning a valuation on both an ‘as is’ and ‘subject to DA approval’ basis
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Submitting a detailed credit proposal to a trusted capital partner
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Negotiating a facility at 65% of valuation, structured to meet 90% of the purchase price
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Ensuring the facility could settle with or without DA approval, preserving flexibility for the client
By the time of settlement, the DA was approved, reinforcing the site’s higher value and enabling the lender to proceed with full confidence.
Results and Benefits
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$4.97 million acquisition loan secured
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90% of purchase price funded, with minimal equity outlay
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Flexible structure allowed settlement pre- or post-DA approval
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DA confirmed pre-settlement, strengthening lender confidence
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Strategic site secured in high-growth Sydney corridor
Conclusion
This case demonstrates DFP’s ability to secure high-leverage funding under tight timeframes, even with planning uncertainty in play. By structuring a flexible acquisition facility aligned to valuation uplift and DA potential, DFP helped the client secure a high-potential site with minimal capital and maximum control.
No matter the challenge, DFP have the experience and network to help you succeed with your site acquisition. Contact us to explore your tailored finance options further.
