Case Study | $1.7M Land & Development Finance Secured for 12-Lot Subdivision – Toogoom, QLD

Background

Development Finance Partners (DFP) was engaged by a Queensland-based development group to secure funding for both the land acquisition and subsequent civil works of a 12-lot residential subdivision in Toogoom, a coastal community just 15 minutes from Hervey Bay. The site spans 3,281 sqm, located only 400 metres from Toogoom Beach, and was already approved for subdivision at the time of funding.

The developers, with long-standing experience in the construction and development industry, had previously completed smaller residential builds. This was their first project of this size and scope, and they sought a funding partner who could help minimise equity requirements and structure a solution to support future growth.

DFP was engaged to assist not only with the settlement of the land but also to arrange development finance for the full delivery of the project—including civil works, infrastructure charges, and capitalised costs.

Project Overview

Upon completion, the project will deliver 12 level residential blocks ranging from 628 sqm to 1,064 sqm, set within a well-established and highly desirable beachside community.

The developers wanted to maximise their gearing and limit their upfront equity contribution, believing the land’s market value had increased since purchase due to recent approvals and strong local demand.

Key Metrics

• Loan Amount: $1,705,000

• Loan Type: 1st Mortgage Facility – Land Settlement and Development Finance

• LVR – Land Settlement: 88% of purchase price (70% of valuation)

• LVR – Development Finance: 65% of Gross Realisation Value (GRV)

• Term: 12 months

• Location: Toogoom, QLD

The Challenge

The client’s objectives were to:

• Secure high-LVR funding for land acquisition

• Minimise equity contribution at settlement

• Access development funding for civil works and infrastructure charges

• Ensure capitalised interest and fees were included to avoid injecting further capital

The client believed the property’s value had appreciated due to a development approval and strong regional market uplift—but needed a lender willing to support that vision and structure terms around it.

DFP’s Strategic Solution

DFP worked quickly to arrange:

• Land settlement funding at 88% of the purchase price, supported by an independent valuation that came in $300,000 above the purchase price

• A flexible development facility structured at 65% of GRV, which included:

  • 100% of civil works and infrastructure costs

  • Capitalised interest and fees, eliminating further equity contribution

  • Terms tailored to align with sales and project delivery timelines

Through its established capital network, DFP negotiated favourable terms with a trusted funding partner and delivered a facility that gave the developers the flexibility and support they needed to complete the project and prepare for their next acquisition.

Results and Benefits

• $1.705 million facility secured with 12-month term

• Land settlement funded at 88% of purchase price

• Valuation uplift leveraged to reduce equity contribution

• 100% of development costs funded, including capitalised interest

• No additional equity required beyond the initial settlement

• Strong structure supports next project acquisition

Conclusion

This case highlights DFP’s ability to structure high-LVR settlement and development finance for emerging developers with strong potential. By unlocking maximum gearing based on real market value and providing full cost coverage for civil works, DFP positioned the client to successfully deliver their first large-scale subdivision while preparing for future opportunities.

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