Background

An experienced residential developer with a strong track record in building homes for clients approached Development Finance Partners (DFP) to secure finance for their largest project to date. While the client had previously completed a land subdivision project, this opportunity marked a step up in both scale and complexity.

Project Overview

Located in Brisbane, the project centred on developing a prime in-fill site in the city’s western growth corridor into a 31-lot residential subdivision in a single stage. The subdivision was designed to meet growing demand for affordable, well-located land while giving the client the flexibility to offer either individual lots or undertake future house-and-land packages.

Key Metrics

The Challenge

The developer sought to proceed with a major bank for construction funding while keeping presales to a minimum. This approach created challenges, as banks generally require higher presale levels to meet their debt coverage criteria.

DFP needed to carefully balance the lender’s conditions with the client’s goal of maintaining flexibility across lot sales and future house-and-land packages. Feasibility pressures arose from unplanned infrastructure contributions and some delays were caused by solicitors     requiring persistence and clear coordination to maintain progress toward settlement.

DFP’s Strategic Solution

DFP worked closely with the client and the lender to secure a construction facility that met the bank’s criteria without the need for any additional equity contribution and minimal presales.

Drawing on strong lender relationships and a clear understanding of internal processes, DFP negotiated two extensions to the approval period to keep the transaction active while reports and presales were finalised. 

The team maintained open communication between all parties, ensuring valuations, QS reports, and legal documentation met the lender’s criteria.

Results and Benefits

The approved $6.6 million construction facility enabled the developer to move forward confidently with civil works and deliver the project as planned. The structure met all key objectives, providing sufficient funding without requiring additional equity from the client.

By keeping presales to a minimum, the developer retained control over future sales and the flexibility to decide whether to release lots individually or package them as house-and-land offerings. This approach supported both project delivery and longer-term growth.

DFP’s persistence, lender relationships, and hands-on approach ensured that the finance solution remained aligned with the client’s vision. The outcome was a well-supported development that strengthened the client’s confidence to take on larger subdivision projects in the future.

Client Testimonial

“Working with DFP, and particularly Nick, on our project has been an exceptional experience from start to finish. Throughout the process, challenges came up as they do with any development, but Nick always had a clear strategy and practical solution ready to keep things progressing. His communication was consistent, transparent, and proactive. Whether it was managing presale expectations, valuation reviews, or navigating lender requirements, Nick coordinated every part of the process with precision. His ability to keep all parties aligned made the funding process seamless. The facility was structured in a way that gave us the flexibility we were after with our home and land packages, while still keeping the lender satisfied. This balance allowed us to move forward with minimal presales and maintain full control over how we released our lots to the market. Nick and the DFP team delivered a level of professionalism and insight that’s hard to come by. Their experience, attention to detail, and commitment to the outcome were instrumental in achieving a strong result for our project.”

Conclusion and Advice

This project demonstrates the value of having an experienced finance partner to navigate the complexities of bank lending. By combining strong lender relationships with clear communication and persistence, DFP helped the client achieve their objectives without additional equity or excessive presale commitments.

For other developers, this case reinforces the importance of allowing your finance partner to coordinate key stakeholders such as valuers, Quantity Surveyors, and solicitors. When these parties work in sync, the funding process runs more efficiently and avoids unnecessary delays.

With the right structure, communication, and guidance, even first-time large-scale subdivision developers can achieve outcomes that support both immediate project success and long-term growth.

For developers tackling larger or more complex projects for the first time, having an experienced finance partner like DFP ensures the process is streamlined, transparent, and aligned with long-term objectives.

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.