A boutique property developer secured a prime development site on Sydney’s prestigious Upper North Shore several years ago, using funding from a major bank. With development approval recently granted for an over-55s apartment and townhouse project under SEPP 55 guidelines, the client was ready to move forward with construction.
However, when they approached their existing bank to fund the next stage, they were advised that the lender did not support SEPP 55 or specialised over-55s developments, leaving the developer in urgent need of an alternative funding solution.
The project comprises a boutique residential development specifically designed for the over-55s market, delivering a mix of high-quality apartments and townhouses. Located in one of Sydney’s most sought-after regions, the Lower North Shore, the development aims to cater to downsizers and retirees seeking comfort, community, and accessibility in a premium location.
Development Finance Partners (DFP) was engaged to structure a flexible construction loan facility that would support an owner-builder structure and overcome the lack of presales and external resources.
Key Metrics
Loan Amount: $4.9 million
Loan Type: First Mortgage Construction Facility
LVR: 55%
Loan Term: Customised for project delivery
Presales: None
Borrower Type: Owner Builder
Development Type: SEPP 55 – Over-55s housing
This project presented several funding challenges:
The existing major bank mortgagee did not support SEPP 55 developments, leaving a gap in financing
No presales were in place at the time of application
The borrower operated as an owner builder, adding complexity to risk assessment
Minimal external resources or cash reserves outside the secured property
The development itself carried specialised market and resale risks due to its over-55s target demographic
These factors made it difficult to access funding through traditional lenders.
DFP immediately assessed the client’s position, feasibility, and risk profile, leveraging long-standing relationships with capital partners experienced in specialised residential finance.
Within 24 hours of sending the credit assessment, DFP secured an indicative offer from a trusted funding partner familiar with over-55s housing. The facility was approved on the following basis:
No presales required
Owner builder accepted
55% LVR based on current valuation
First mortgage secured
This tailored solution enabled the developer to move forward with confidence, knowing that the capital was secured to commence construction despite the absence of traditional lending criteria.
$4.9 million first mortgage facility approved
Funding secured within 24 hours of credit submission
No presale requirement, allowing immediate commencement
Owner builder structure accepted, reducing delays
Tailored construction funding for SEPP 55 project in a high-demand area
This case demonstrates DFP’s ability to deliver fast, strategic finance for specialised developments overlooked by traditional banks. By structuring a non-bank construction loan for a boutique over-55s housing project with no presales and owner-builder delivery, DFP empowered the client to take the next step, without compromise or delay.
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