Case Study | $7.425M Land Settlement Finance Secured at 99% LVR , Austral, NSW

Background

Development Finance Partners (DFP) was engaged by a property developer to secure urgent site acquisition funding for a 2.02-hectare development site in Austral, a fast-growing suburb located 42 km south-west of Sydney’s CBD. The client, preparing to undertake a 44-lot residential subdivision on the site, required a high-LVR facility to complete the land settlement.

With limited equity available and a valuation that supported a significant uplift from the purchase price, the client was looking for a funding partner who could deliver maximum gearing and ensure a smooth path toward future construction finance.

Project Overview

The site is earmarked for a future Torrens Title subdivision of 44 residential lots, capitalising on strong population growth, infrastructure investment, and demand for affordable housing in the Austral and South West Sydney corridor.

The client’s goal was to settle the site quickly, using valuation uplift to minimise upfront capital contribution and to position themselves to begin civil works once approvals were in place.

Key Metrics

• Loan Amount: $7.425 million

• Loan Type: First Mortgage – Land Settlement

• LVR: 99% of purchase price (66% of valuation)

• Security: 2.02 ha future development site

• Location: Austral, NSW

• Term: 12 months

The Challenge

• The client required maximum leverage with minimal equity contribution

• The funding needed to settle quickly and be based on valuation uplift, not just contract price

• The developer also required a lender willing to support future construction funding, ensuring continuity between land settlement and build commencement

Traditional lenders were unable to provide the gearing required or offer flexible future funding options.

DFP’s Strategic Solution

DFP worked closely with its capital partner to:

• Leverage the valuation uplift, which showed a 50%+ increase over the purchase price

• Negotiate a first mortgage facility at 99% of the purchase price, while maintaining conservative LVR on valuation at 66%

• Structure a 12-month facility with a clear pathway to roll into construction finance when development is ready to proceed

DFP’s approach allowed the client to preserve capital, complete the settlement, and retain strategic momentum for the project.

Results and Benefits

• $7.425 million loan secured for land settlement

• 99% LVR of purchase price, significantly reducing equity required

• Fast approval and settlement based on strong valuation support

• Capital partner aligned for future construction funding, avoiding funding delays later

• 12-month facility structured to support development timeline

Conclusion

This case highlights DFP’s expertise in securing high-LVR site acquisition finance for future development projects. By negotiating a 99% LVR facility with a capital partner committed to ongoing funding, DFP helped the client move quickly, minimise equity outlay, and position their project for successful delivery in one of Sydney’s most active growth corridors.

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