Background
Development Finance Partners (DFP) was engaged by a property advisory group to restructure existing debt facilities secured across a portfolio of assets located in New South Wales and Victoria.
The restructure was driven by the need to reduce debt against a key landbank asset following a downward valuation adjustment. The change affected loan-to-value ratio (LVR) thresholds and introduced compliance risks under the client’s existing finance arrangements.
The client sought a solution that would restore compliance, reduce financial pressure, and release equity for broader strategic flexibility.
Project Overview
The property portfolio included mixed-use assets with varying security profiles and loan structures. One landbank asset within the portfolio had dropped in assessed value, triggering a breach in the LVR covenant under the mortgage agreement.
DFP’s objective was to develop a tailored funding structure that:
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Spanned multiple property types
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Restored compliance with existing loan terms
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Released over $2.7M in cash to reduce landbank-related debt
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Offered loan terms tailored to each asset’s profile, from short-term finance to long-term amortising facilities
Key Metrics
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Facility Size: $18,000,000
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Finance Type: Mixed (refinance + cash-out + landbank support)
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LVR: 75% average across the portfolio
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Loan Term: Ranged from 1 to 30 years depending on the asset
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Cash Released: $2,700,000+
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Location: NSW and VIC
The Challenge
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The portfolio restructure involved multiple security types and lenders
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A key landbank asset required urgent debt reduction to restore LVR compliance
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The client needed access to significant cash-out to reduce exposure and preserve strategic control
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Finance terms needed to be tailored per asset, not applied as a blanket solution
DFP’s Strategic Solution
DFP carried out a full credit assessment and asset-level review, then engaged its capital partner network to structure a flexible, asset-specific funding strategy.
The solution included:
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$18M refinance across the NSW and VIC portfolio
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75% LVR maintained across all securities
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Over $2.7M in cash-out to reduce the landbank facility
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A combination of short- and long-term loan facilities, matching each asset’s profile and income plan
DFP’s coordination across multiple stakeholders, including valuers, lenders, and legal teams, ensured the transaction settled smoothly and efficiently.
Results and Benefits
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$18 million funding secured across a multi-asset portfolio
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Landbank compliance restored through targeted debt reduction
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$2.7 million cash-out released to reduce financial pressure
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Loan terms matched to each asset’s profile, from 1 to 30 years
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Newfound financial flexibility, enabling the client to explore future development and acquisition opportunities
Conclusion
DFP’s ability to deliver tailored portfolio finance solutions was critical in unlocking $2.7M in capital and restoring loan compliance for this client. By structuring a flexible, multi-asset refinancing package, DFP positioned the client to move forward with confidence,well-capitalised and in control of their strategic roadmap.
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.
