Development Finance Partners (DFP) was engaged by an experienced developer to secure landbank funding for a pre-DA residential development site in Lake Cathie, a coastal town on the Mid North Coast of New South Wales. The developer, with over 20 years of experience in the NSW regional residential sector, had a strong track record across both southern and northern parts of the state.
The 2,000 sqm site was secured under an off-market option contract 12 to 18 months prior. During the option period, the land had appreciated significantly in value. The client sought to leverage this uplifted valuation to reduce their required equity contribution at settlement and move forward with plans to develop 35 luxury apartments.
The site, while not yet DA-approved, held strong long-term potential for high-end residential product in a growing regional market. The developer needed a flexible landbank facility that would allow time for:
Lodgement and processing of the Development Application
Engagement of consultants for construction approvals
Launch of a presales campaign
The funding structure needed to accommodate this timeline while also minimising upfront equity outlay.
Key Metrics
Loan Amount: $6,700,000
Loan Type: Landbank Finance
LVR: 59% of valuation
Term: 12 months (with 6-month minimum term)
Security: Pre-DA development site
Location: Lake Cathie, NSW
The site was pre-DA, with no planning approval in place at time of funding
The developer required high leverage with minimal cash equity
Traditional lenders were cautious about non-DA-approved regional sites
The facility needed to include capitalised interest and fees, reducing pressure on early-stage cash flow
Funding terms had to be aligned with the anticipated planning and presales timeline
DFP undertook a detailed assessment of the site’s fundamentals, planning potential, regional market strength, and the developer’s track record. A comprehensive credit submission was then prepared and presented to selected capital partners.
DFP coordinated and led several lender discussions, ultimately securing a $6.7 million facility at 59% LVR on the current site valuation.
The facility was structured with:
Interest and fee capitalisation, reducing initial cash requirements
A 12-month term with a 6-month minimum, allowing time for the DA, approvals, and presales campaign
Time buffers built into the facility, ensuring the developer could meet planning milestones without needing to refinance prematurely
The transaction was successfully settled in July 2023, enabling the client to move forward confidently with the next stages of the project.
$6.7 million landbank facility secured
59% LVR, minimising equity contribution
Interest and fees capitalised, preserving early cash flow
Structured to support DA, presales, and construction planning
Successfully settled, with time-aligned funding terms
This case highlights DFP’s ability to deliver high-leverage, pre-DA landbank funding solutions for experienced regional developers. By structuring a capitalised, flexible facility around planning timelines and market uplift, DFP helped its client unlock value and preserve momentum on a key regional apartment project in Lake Cathie.
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.