Development Finance Partners (DFP) was engaged to secure a large-scale construction finance facility for a residential development in Sydney’s North-Western suburbs. The project, comprising 88 apartments, had a long and complex history, beginning in 2017 when the client acquired the site—then a 10-unit older-style block—with a vision for redevelopment.
In late 2018, the client entered an on-sale option agreement with a prominent marketing and development group. Although development consent was granted, the purchaser was ultimately unable to complete due to COVID-related disruptions. The client pivoted and made the strategic decision to proceed independently, undertaking early construction works (including basement level), building a display unit, and refining the design with Council over the following years.
By 2023, the client was ready to complete the project and needed a funding partner capable of delivering a $41 million facility with flexibility around presale requirements and construction staging.
The development involved the transformation of a strategically located site into a multi-storey residential apartment building, catering to strong demand in Sydney’s growing outer metro region. The build was already partially completed when DFP was engaged, with significant civil and below-ground work finalised.
Key Metrics
Loan Amount: $41,000,000
Loan Type: Residential Construction Finance
LVR: 70% of Gross Realisation Value (GRV)
Presale Coverage: Limited to 30% debt cover
Location: Sydney Metropolitan – North-Western Suburbs
The transaction presented several significant challenges:
Partially completed works, requiring careful due diligence by funders
A high borrowing requirement of $41 million, limiting eligible lenders
Pre-sales were approaching sunset dates, creating urgency
Market uncertainty surrounding rising construction costs and interest rates
Presale coverage was lower than most traditional lenders required
These complexities made traditional funding routes unviable and required a bespoke solution from an experienced financier familiar with complex construction risk.
DFP led all aspects of the funding process, leveraging long-standing relationships to secure approval with a trusted capital partner who was comfortable with:
70% LVR, even with limited presale cover (30% debt cover)
Funding a partially completed site with appropriate step-in rights and performance guarantees
Offering attractive terms despite broader market volatility
DFP also:
Negotiated extensions to presale contracts via the client’s solicitor
Introduced a specialist marketing firm to boost sales velocity for remaining units
Liaised with the Project Manager and builder to finalise step-in documentation and builder performance guarantees
Assisted in preparing and submitting all required loan and settlement documentation
$41 million construction facility secured, enabling project completion
70% LVR approved, with flexible presale terms
Presale contract extensions negotiated, avoiding risk of lapse
Project momentum restored, with new marketing campaign underway
Builder, financier, and legal stakeholders aligned, ensuring smooth drawdown and construction continuation
This case highlights DFP’s end-to-end involvement in delivering strategic funding for complex, high-value residential projects. By securing a $41M facility with low presale requirements and full stakeholder coordination, DFP enabled the developer to regain control, complete the project, and position it for successful sales outcomes in a challenging market.
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.