Background
Development Finance Partners (DFP) was engaged to help revive a high-profile, mixed-use development in the blue-chip riverside suburb of South Perth, Western Australia. Originally approved in 2013, the project included a 13-storey residential tower comprising 75 luxury apartments and a 10-level A-Grade commercial office building with almost 6,000 sqm of strata office space.
Construction commenced in 2014, backed by strong market interest. Around 75% of apartments had been pre-sold, and two-thirds of the commercial space was pre-leased to a major tenant. But when the Perth market declined sharply, the anchor tenant withdrew and finance collapsed. Construction was halted, and the site stood abandoned for five years, with several unsuccessful attempts made to relaunch the project.
The developer, a well-established and highly regarded group with over two decades of experience across Australia, is recognised as one of Western Australia’s leading urban infill specialists. Known for delivering premium, high-density residential and mixed-use projects, the company had the capability to complete the build but required a strategic funding solution and stakeholder alignment to move forward.
Project Overview
The stalled project, now known as One Richardson / Richardson Centre, required a complete capital restructure to unlock construction funding and restore confidence among stakeholders and potential equity investors. The project’s strong location, design, and presale history remained compelling—but a fresh approach was needed to overcome legacy challenges and rising construction costs.
Key Metrics
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Loan Amount: $60.562 million
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Loan Type: Senior Debt – Construction Finance
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LVR: 76% of Gross Realisation Value (GRV)
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GRV: $79.325 million
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Security: Completed strata units (residential and commercial)
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Location: South Perth, WA
The Challenge
This project faced a series of major challenges:
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Construction had been halted for over five years, requiring extensive due diligence
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The project had a large commercial component, limiting finance options
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Perth’s office vacancy rate rose from 0% to 20% during the market downturn
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COVID-19 border closures and labour/material shortages escalated build costs
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The rising debt requirement continually pushed funding limits during negotiations
DFP needed to reset the capital structure and bring a new funding partner on board—while also coordinating with legacy creditors and advisors to maintain momentum.
DFP’s Strategic Solution
DFP led a full capital restructure, re-engineering the development’s financial model and creating a clear path to completion. This involved:
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Securing a new senior debt facility of $60.5 million at 76% of GRV
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Convincing existing creditors to support the revised structure
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Creating a framework that made equity raising easier, thanks to reduced risk
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Collaborating closely with the quantity surveyor and lender to ensure cost coverage amidst rising construction prices
Despite ongoing volatility, DFP maintained confidence across all stakeholders through transparent coordination and a commercially viable structure.
Results and Benefits
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$60.562 million construction loan secured with flexible drawdowns
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Project revived after five years of dormancy
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Stakeholder alignment achieved, including legacy creditors
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Equity successfully raised, enabling full project funding
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Funding confidence restored, despite cost volatility and market hesitation
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Strategic restart secured for one of Perth’s most prominent mixed-use sites
Conclusion
This South Perth project is a clear example of DFP’s capacity to resolve complex capital challenges for developers working on high-profile, stalled, or distressed developments. Through a full capital restructure and stakeholder re-engagement, DFP enabled the successful revival of a premium residential and commercial development in one of WA’s most valuable locations.
What the Client says...
"As soon as we met the people at DFP, we could tell they were seasoned financiers",
"We had always known it was going to take a really experienced and sophisticated operator to see through all the history, the baggage and the very complex capital structure of this project to appreciate it for what it actually was, and that's how we found DFP."
Development Finance Partners find innovative solutions, requiring less equity, so you can start your project sooner. We specialise in construction and development finance and can tailor a funding package to suit your project. To discuss your options, get in touch with us today.
