Background
Development Finance Partners (DFP) was engaged by a boutique property development group to assist with the acquisition of a mixed-use property in the Northern Rivers region of New South Wales. The site, comprising existing commercial and residential elements, was earmarked for future redevelopment into a premium townhouse project targeting the region’s growing demand for lifestyle-oriented housing.
With a vision to revitalise the site into an upmarket residential community, the developer sought flexible funding to secure the asset while navigating a complex regional lending environment.
Project Overview
Located in a sought-after pocket of Northern Rivers, the site offered strong redevelopment potential but presented several challenges due to its regional setting and exposure to market fluctuations. The developer needed a tailored solution that would allow them to settle the purchase quickly while positioning the asset for long-term uplift through rezoning and redevelopment.
Key Metrics
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Loan Amount: $4.05 million
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Loan Type: First Mortgage – Site Acquisition
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LVR: 60% of assessed value
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Location: Northern Rivers, NSW
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Turnaround: 4 weeks from engagement to settlement
The Challenge
Funding the acquisition of this site involved several complexities, including:
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Regional location, with lenders favouring metro-based projects
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A softening property market affecting lender appetite
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Rising supply chain and construction costs, squeezing potential margins
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Recent flooding events in the region, increasing perceived risk and triggering more stringent planning and council requirements
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Broader economic uncertainty impacting regional investment confidence
These factors made many traditional and non-bank lenders reluctant to fund the deal.
DFP’s Strategic Solution
Leveraging its deep lender network and understanding of regional funding challenges, DFP:
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Engaged a trusted capital partner with a strong appetite for non-metro opportunities
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Structured a $4.05 million first mortgage facility at 60% LVR, balancing borrower needs with lender risk tolerance
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Negotiated attractive terms despite the environmental and market headwinds
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Delivered the full solution within four weeks, meeting the client’s critical settlement deadline
DFP’s early engagement with both the lender and the developer ensured all due diligence, valuation assignment, and deal structuring were handled efficiently, despite the unique location and market constraints.
Results and Benefits
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$4.05 million facility secured under tight timelines
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60% LVR approved in a challenging regional lending environment
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Funding structured for long-term redevelopment vision
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Settlement achieved within 4 weeks, avoiding delays
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Lender confidence secured despite flood zone and market pressures
Conclusion
This Northern Rivers transaction illustrates DFP’s ability to secure tailored site acquisition funding in regional markets where traditional lenders often hesitate. By securing a $4.05M facility on favourable terms under complex conditions, DFP enabled the developer to move forward with a high-potential redevelopment in a tightly held coastal region.
Our purpose is to deliver timely and tailored lending solutions for developers. Contact us to learn more about lending solution for your next project.
