Background

A seasoned property developer approached Development Finance Partners (DFP) seeking a complex refinance and funding solution involving a diverse property portfolio in Sydney’s Inner West. The objective was to unlock equity, rationalise the portfolio, and support development progress across multiple sites.

The portfolio included a mix of residential, commercial, and development land holdings. At the same time, the developer was advancing a 22-apartment residential project and required capital to retire existing debt, manage ongoing costs, and support broader portfolio strategy.

 

Project Overview

The client’s property assets included three separate parcels:

  • A retail investment property

  • A multi-unit residential property with an active sales campaign

  • A mixed-use site comprising residential and industrial holdings, subject to a pending rezoning application

DFP was engaged to structure a high-LVR facility that would allow the developer to refinance existing borrowings, reduce second mortgage exposure, and capitalise all interest, fees, and costs for a 12-month term while the portfolio was restructured.

Key Metrics

  • Loan Amount: $30 million

  • Loan Type: Structured facility (Senior + Mezzanine Debt)

  • LVR: 78%

  • Loan Term: 12 months

  • Security: Three properties across Sydney’s Inner West

 

The Challenge

This transaction involved multiple layers of complexity. The client required a highly geared facility with flexibility to support various asset outcomes. In addition to the high LVR, the following challenges had to be addressed:

  • Security across three distinct assets at different stages of sales and redevelopment

  • Pending rezoning on one parcel, affecting valuation and future use

  • Second mortgagee consent was essential, given their significant loan exposure

  • Cross-state coordination involving four legal firms and stakeholders across three states

Traditional lenders were unable to support the structure or risk profile required. The developer needed a partner capable of delivering a bespoke, high-leverage solution with speed and certainty.

 

DFP’s Strategic Solution

DFP worked closely with its capital partner to deliver a structured loan facility with an LVR of 78%, made up of a combination of senior and mezzanine finance. The facility was tailored to:

  • Retire the existing first mortgage

  • Partially pay down the second mortgage

  • Capitalise interest, fees, and holding costs for the full 12-month term

To strengthen the facility's risk position, DFP also negotiated debt reduction milestones, tied to minimum sales targets on the multi-unit residential asset.

Throughout the transaction, DFP coordinated communications between all key stakeholders,ensuring aligned expectations between the borrower, incoming lender, existing mortgagee, and four legal firms spanning NSW, VIC, and QLD.

 

Results and Benefits

  • $30 million facility secured at 78% LVR

  • Interest and fees capitalised for 12 months, easing cash flow

  • Partial exit for second mortgagee, improving overall debt position

  • Flexible structure supporting staged asset sales and rezoning outcomes

  • Efficient settlement through legal coordination and strategic stakeholder engagement

 

Conclusion

This transaction is a standout example of DFP’s ability to deliver structured property finance solutions for complex, multi-asset portfolios. By combining senior and mezzanine funding and negotiating key milestone-based outcomes, DFP helped the client unlock capital, reduce debt exposure, and preserve strategic control across multiple projects.

 

To chat about your next project and find out how we can help with property development and construction funding, request a call back.
Tags

Case Study, Construction Loans, Insights, Multi-Asset, Property Development Planning, Refinance

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