Case Study | DFP Secures $10.1M Construction Loan, Bundaberg QLD

Background

A Queensland-based development group sought to establish a new master-planned residential community in the Bundaberg Region. With updated approvals in place and civil works ready to commence, the developer required a funding partner capable of delivering flexible finance aligned with the project’s scale, timeline, and regional characteristics.

Project Overview

The approved masterplan featured staged residential lots located along the coastal corridor of Bundaberg, an increasingly attractive destination for both locals and interstate buyers, drawn by its lifestyle appeal, natural surroundings, and access to essential amenities.

The site was strategically positioned to deliver much-needed housing in a high-demand regional market. Its scale and staged rollout offered flexibility to adapt to evolving market conditions while supporting long-term project viability.

Key Metrics

• Loan Amount: $10,127,000
• Loan-to-Valuation Ratio (LVR): 55%
• Loan-to-Cost: 65%
• Presales at Drawdown: 4 (with further sales projected)

The Challenge

Despite strong fundamentals and approvals in place, the project’s regional location and limited early presales constrained funding options. Traditional lenders were hesitant to engage given that only four presales had been secured at the time of funding application, below the typical thresholds required for construction loans.

The developer needed a funding solution that could:

• Accommodate minimal presales
• Cover 100% of Stage 1 construction costs
• Enable immediate commencement of civil works
• Preserve working capital

To ensure clarity around funding expectations, parameter settings were established through a structured assessment process.

How Funding Parameters Were Set

Funding settings were determined through independent valuation input, detailed cost analysis, and lender credit assessment, with leverage and pricing aligned to project fundamentals rather than presale volume alone. Expectations were agreed early in the process, and key assumptions were communicated throughout structuring to ensure transparency around how loan-to-value, loan-to-cost, and funding capacity were established.

Decision Process & Communication Structure

Throughout structuring, defined review checkpoints were established with the client covering valuation input, cost verification, credit assessment, and lender engagement. Progress updates were provided as each stage advanced, ensuring visibility over documentation requirements, approval sequencing, and timing expectations. This structured communication approach helped align assumptions early and maintain clarity as the transaction moved through credit and legal processes.

DFP’s Strategic Solution

DFP delivered a tailored, end-to-end strategy to overcome the funding barriers. By leveraging strong lender relationships and in-depth experience with regional developments, DFP sourced two competitive loan options suited to the project’s unique delivery model and presale status.

To facilitate a smooth and timely approval, DFP:

• Engaged valuers and a quantity surveyor early to ensure accurate reporting
• Compiled a detailed project brief including feasibility, market context, and delivery strategy
• Negotiated reduced presale requirements, leveraging the project’s coastal location and early buyer interest
• Worked closely with the lender’s credit and legal teams to fast-track documentation and settlement

This proactive, hands-on approach enabled the developer to secure funding with confidence and maintain critical project momentum.

Results and Benefits

DFP successfully secured a $10.1 million construction facility that covered 100% of Stage 1 civil works. The financing allowed the developer to commence works on schedule while preserving equity and liquidity. This positioned the project to meet Stage 1 delivery targets and accelerate future stages.

Key Outcomes:

• Full construction funding approved despite minimal presales
• Competitive terms that preserved capital and supported rollout
• Alignment with a lender experienced in staged regional developments
• Comprehensive support through valuation, QS, and legal processes to minimise delays

Conclusion 

This case demonstrates the importance of strategic finance structuring in regional subdivision markets where presale thresholds often restrict funding access. While traditional lenders imposed rigid presale requirements, DFP identified and delivered a flexible funding solution aligned with the project's vision and market potential.

By unlocking capital at a critical moment and removing restrictive lending conditions, DFP helped transition this development from planning to delivery—ensuring project momentum, adaptability, and a clear path toward long-term success.

Client Testimonial

I engaged with DFP early, when we first began exploring the idea of developing our land, a major shift from our original plan to simply hold the asset. I knew that if we moved forward, I’d need support securing funding for both approvals and, later, construction.

The approval process was anything but smooth. We faced multiple delays and challenges that drained both time and capital. As funds began to run low, I needed finance that traditional banks wouldn’t offer, especially for a greenfield project. That’s when DFP stepped in.

They understood the complexity of our project and worked closely with me to secure fast, flexible funding that aligned with our long-term vision. Their support helped us avoid costly delays and keep the momentum going through the approvals phase.

Once approvals were in place, I had no hesitation returning to DFP for construction finance. They acted quickly, combining the original facility with the new loan, streamlining the structure, reducing costs, and allowing us to move into delivery without disruption.

I’d confidently recommend DFP to anyone undertaking a development. Their experience, responsiveness, and genuine commitment to their clients really stand out.

Thank you to the entire team—Bob, Baxter, Matthew, Kate Rundle and also to Tracy from Dash Credit. It’s been a pleasure working with you all.

Thank you, Team DFP!