Background
Development Finance Partners (DFP) was engaged by a seasoned property developer to arrange the rollover and extension of an existing land finance facility for a DA-approved residential subdivision site in Austral, New South Wales. The site is earmarked for a Torrens Title subdivision of 44 lots.
The developer, who specialises in land development, project management, and advisory across the Sydney region, had recently secured Development Approval (DA) and obtained an updated valuation reflecting a significant uplift in land value.
With the construction phase on the horizon, the client required an extended funding solution that allowed time to finalise approvals and prepare for development finance, without unnecessary cost or disruption.
Project Overview
The property had originally been acquired with land finance in place. Upon DA approval and valuation uplift, the client sought to:
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Extend the existing facility by 12 months
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Increase the loan amount to capitalise interest for the extended term
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Maintain cost efficiency while preparing for the next funding stage
DFP was tasked with structuring a solution that supported these objectives and allowed a smooth transition into the construction phase within 6–12 months.
Key Metrics
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Loan Amount: $8,750,000
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Loan Type: Rollover of Land Finance
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LVR: 70% of updated DA-approved land value
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Term: 12 months (6-month minimum)
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Security: DA-approved subdivision site
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Location: Austral, NSW
The Challenge
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The existing facility was nearing expiry, and an extension was urgently required
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The developer needed to increase the facility to cover capitalised interest
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The rollover had to reflect the uplift in land value from DA approval
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A minimum term of 6 months was needed to control costs while planning the development funding transition
DFP’s Strategic Solution
DFP worked closely with the incumbent financier to:
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Negotiate an extension of the land facility for an additional 12-month term
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Secure approval for an increased loan amount, reflecting the newly uplifted valuation
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Capitalise interest and fees within the new term, improving cash flow
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Ensure a 6-month minimum term, providing cost control while allowing flexibility for the transition into construction funding
This allowed the client to maintain momentum on the project without financial strain or funding delays.
Results and Benefits
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$8.75 million facility extended and increased
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Funding aligned with DA uplift, reducing additional equity requirements
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12-month term secured, with capitalised interest included
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6-month minimum term negotiated, reducing holding costs
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Developer positioned for a smooth transition into construction finance
Conclusion
This case highlights DFP’s expertise in managing rollover land finance solutions that align with evolving project milestones. By extending and increasing the facility based on new valuation metrics, DFP enabled the client to move confidently toward delivery of a 44-lot subdivision in one of Sydney’s high-growth corridors.
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.
