---
title: Case Study | Residual Stock Loan – Heidelberg, VIC • DF Partners
description: DFP secured fast and flexible residual stock finance of $3 million at 70% LVR for property development project.
---

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# [Case Study | Residual Stock Loan – Heidelberg, VIC • DF Partners](https://dfpartners.com.au/insights/case-study-residual-stock-loan-heidelberg-vic)

 Written by [Admin](https://dfpartners.com.au/insights/author/admin) | Mar 7, 2022 2:15:00 PM

### **Background**

Development Finance Partners (DFP) was re-engaged by a long-standing client to secure residual stock finance for a recently completed townhouse development in Heidelberg, Victoria. DFP had previously sourced and settled the original construction loan during the early stages of COVID-19.

The developer, well regarded for delivering high-quality small-to-medium density residential projects, completed construction in August 2021. However, a new round of lockdowns across Melbourne delayed the ability to bring the completed dwellings to market.

With the construction loan maturing, the client required a fast and flexible refinance solution. Their objectives were to repay the existing facility, release equity embedded in the completed asset, and enable a measured sell-down strategy to maximise profitability.

 

### **Project Overview**

The project comprised a completed boutique townhouse development in Heidelberg, a well-established suburb within Melbourne’s north-east corridor. With construction completed to a high standard, the developer sought to strategically sell down the dwellings while accessing equity for deployment into other portfolio assets.

The objective was to refinance the residual stock at a 70% Loan-to-Value Ratio, enabling both debt repayment and early equity release, without placing pressure on sales timelines.

**Key Metrics**

- **Loan Amount:** $3.0 million
- **Loan Type:** Residual Stock Facility (Senior Debt)
- **LVR:** 70%
- **Term:** No minimum term required
- **Security:** Completed townhouse development
- **Location:** Heidelberg, VIC

 

### **The Challenge**

With Christmas and New Year approaching, timing was critical. The developer needed a fast, flexible refinance solution to:

- Repay the existing construction loan
- Release embedded equity for use across other investment opportunities
- Support a measured sell-down of the remaining stock, maximising value rather than rushing sales
- Secure finance quickly, despite the seasonal slowdown in processing timelines

Traditional banks were not suited to the timeline or flexibility required for this refinance, especially without presale obligations.

 

### **DFP’s Strategic Solution**

Drawing on a long-standing relationship with a preferred capital partner, DFP negotiated a residual stock loan facility of $3 million at 70% LVR. The facility featured:

- No minimum loan term, offering maximum repayment flexibility
- Fast approval and settlement, despite occurring over the traditionally slow holiday period
- Senior debt terms, avoiding the need for mezzanine structuring or additional capital injection

The lender also provided a flexible drawdown and repayment structure to align with the client’s planned sales rollout, allowing them to optimise return on each dwelling sold.

 

### **Results and Benefits**

- $3 million residual stock loan secured at 70% LVR
- Construction loan fully repaid
- Equity released to fund other development and portfolio opportunities
- Flexible, no-minimum-term facility matched to the project’s sales timeline
- Quick turnaround over the Christmas/New Year period

### **Conclusion**

This case highlights DFP’s expertise in sourcing residual stock finance for completed developments, particularly where speed, flexibility, and equity release are essential. By delivering a tailored $3M facility at 70% LVR without minimum term constraints, DFP enabled the client to exit their construction loan, retain control of their sales strategy, and reinvest capital into future opportunities.

 

**Looking for finance options for your next project, **[**talk with our team today**](https://dfpartners.com.au/contact-us/)**.**

[View full post](https://dfpartners.com.au/insights/case-study-residual-stock-loan-heidelberg-vic)

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