Background
Development Finance Partners (DFP) was engaged to arrange a construction finance solution for a boutique residential project comprising four luxury coastal townhouses in Currumbin, Queensland. The developer, a returning DFP client with a strong reputation for delivering high-end owner-occupier stock, had entered into a Joint Venture (JV) with a landowner who already held title to the site.
The developer brought development expertise, approvals, and project delivery capability to the partnership, while the landowner contributed the site and agreed to mortgage it as security for the facility.
Project Overview
The project was designed to deliver four architecturally designed, high-specification townhomes in a tightly held beachside enclave. With strong local demand for premium owner-occupier product, the JV partners saw an opportunity to capitalise on the location’s limited supply and high resale value.
DFP was engaged to structure a facility that supported:
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Progressive drawdowns for construction
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A non-traditional JV model, with each party contributing different forms of value
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A limited presale strategy, allowing for maximum design and marketing flexibility
Key Metrics
The Challenge
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The project was delivered under a Joint Venture, requiring lender comfort around:
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Split responsibilities between landowner and developer
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Mortgage security from the landowner
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Experience and capability from the developer
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The facility needed to be progressively drawn in line with construction
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The structure had to avoid unnecessary complexity while maintaining lender confidence
DFP’s Strategic Solution
DFP arranged a progressive draw construction facility at 65% of GRV, fully secured by the site and supported by the developer’s track record.
Key actions included:
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Structuring the JV arrangement to ensure lender acceptance of mortgage security from the landowner
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Presenting a clear delivery strategy that leveraged the developer’s experience
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Coordinating between legal representatives to finalise joint venture terms, loan documentation, and settlement timelines
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Ensuring the facility allowed the project to proceed without presale hurdles, giving the developer control over timing and buyer selection
Results and Benefits
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$4.1 million construction loan secured under a bespoke JV structure
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65% LVR based on GRV
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Progressive drawdown facility matched to construction milestones
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Full support for Joint Venture model, with landowner and developer contributions aligned
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Enabled delivery of premium coastal townhouses in a tightly held market
Conclusion
This project showcases DFP’s ability to structure tailored construction finance for complex Joint Ventures. By delivering a flexible facility aligned with both landowner and developer needs, DFP enabled a trusted client to move forward with a high-end development in one of Queensland’s most desirable coastal suburbs.
Whatever the size of your development plan, DFP have a wealth of experience and strong relationships to help you succeed. Contact us to explore your tailored finance options.
