Case Study | $5.6M Site Finance Secured for Land Subdivision, North Melbourne, VIC

Background

Development Finance Partners (DFP) was engaged to secure urgent funding for the settlement of a 1.384-hectare residential subdivision site in Melbourne’s outer north. The developer, an experienced operator with a strong track record in delivering residential, commercial, and land subdivision projects across Victoria, had been left exposed after a previous lender withdrew at the last minute—despite having issued formal approvals.

With the settlement deadline approaching and the developer at risk of breaching their contractual obligations, DFP was tasked with sourcing a reliable and fast-turnaround funding solution to complete the acquisition.

Project Overview

The site, located just 20km from the Melbourne CBD, sits within a high-demand growth corridor that has seen median house prices rise by over 50% since 2015. Surrounded by established amenities, parklands, and quality schools, the location was ideal for a medium-density subdivision.

The property had an existing development approval (DA) in place for 36 residential lots. However, the developer identified an opportunity to pursue a revised DA with increased density, reflecting changing planning frameworks and current market demand. The intention was to unlock value uplift through reconfiguration, increasing the site's 'as-is' and future gross realisation value (GRV).

Key Metrics

• Loan Amount: $5.6 million

• Loan Type: First Mortgage – Site Acquisition

• LVR: 76% of current 'as-is' site value

• Security: 1.384 ha residential development site

• Location: Outer North Melbourne, VIC

The Challenge

• The developer had a tight settlement timeframe, with only 10 days to complete

• A prior lender withdrew unexpectedly, placing the deal and project timeline at risk

• The site had a DA for 36 lots, but the developer planned to revise the scheme to achieve greater density and profit uplift

• The client required a lender who could work quickly, accept the existing valuation, and see the future potential of the site despite relying on current approvals for security

DFP’s Strategic Solution

DFP immediately assessed the site’s valuation and feasibility, coordinating with the developer and their legal and planning team to assign the existing valuation for lender use.

Drawing on trusted capital relationships, DFP secured an agreement with a preferred funding partner to provide a $5.6 million loan at 76% LVR, based on the existing ‘as-is’ value and current 36-lot approval.

The facility was:

• Settled in under a week, meeting the client’s deadline

• Structured to allow future uplift once the revised DA was approved

• Designed to minimise equity contribution, maximising gearing against current site value

Results and Benefits

• $5.6 million in site acquisition funding secured within one week

• 76% LVR approved on current 'as-is' site value

• Settlement deadline met, avoiding breach of contract

• Valuation assignment accepted, reducing duplication and cost

• Strategic funding solution enabled future value uplift through DA reconfiguration

Conclusion

This transaction highlights DFP’s ability to move quickly and deliver time-critical funding for developers facing lender fallout or unexpected settlement risk. By securing site finance at 76% LVR in just a few days, DFP ensured the developer could complete the purchase, retain project momentum, and pursue value uplift through revised planning outcomes.

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