Background
A well-established development group with both international and domestic development experience engaged Development Finance Partners to secure funding for a large landholding in Southeast Queensland. The site had been held for more than a decade, and the group was progressing plans for future subdivision.
Project Overview
Located in a coastal growth corridor in Queensland, the site is a significant englobo parcel identified for residential development.. With a private loan in place and planning activity restarting, the Sponsors required a new facility to refinance their existing lender, support an amended development approval, and prepare for the next stage of delivery.
Key Metrics
Facility Type: Senior landbank facility
Loan Amount: Sub $10M
LVR: 55% against current valuation
The Challenge
The site represented a high-value strategic holding with significant future potential. Given its long-term ownership and the evolving planning environment, lenders required a clear understanding of the site’s development pathway and timing before committing to a new facility.
The existing facility was held by a private lender who was looking to exit and reinvest funds elsewhere. This required a well-structured solution that addressed both the exit timeline and lender expectations.
Development Finance Partners worked closely with the Sponsors, who brought a mix of development and debt structuring expertise. By clarifying the site’s history, verifying past works, and building a clear development narrative, DFP helped restore lender confidence and position the proposal for a successful refinance.
DFP’s Strategic Solution
DFP prepared a detailed lender information pack and launched a competitive tender process to attract the most suitable capital partners. The goal was to refinance the private loan while also setting up the project for future stages.
The recommended structure was a senior debt facility that included 12 months of interest capitalisation. This gave the Sponsors time to secure their amended development approval
while preserving cash flow. The lender also agreed to no minimum interest period, allowing the client to move directly into construction funding when ready.
Strong existing relationships allowed DFP to negotiate favourable terms on pricing, gearing, and settlement timing. The result was a smooth refinance that aligned with the project’s planning milestones and kept momentum on track.
Results and Benefits
The new facility allowed the Sponsors to retain full ownership of the site while advancing planning work aimed at increasing on-site yield for future subdivision.
It also provided enough flexibility to accommodate council timeframes and account for potential delays. With the amended application now lodged, the Sponsors are progressing with confidence, supported by a facility that meets the needs of their project timeline.
DFP ensured the selected lender can fund the civil works stage. This reduces the need for another refinance and supports a seamless transition from planning into construction.
Conclusion and Advice
This case demonstrates the importance of forward planning and aligning funding with key development milestones. For developers holding strategic sites, a flexible landbank facility can be the difference between stalled progress and long-term value creation.
Those who take a holistic approach to finance by considering both current needs and future stages are better equipped to manage timelines, reduce capital pressure, and maintain control.
Working with a finance partner who understands both planning dynamics and lender expectations allows developers to build a funding pathway that supports the entire project lifecycle. From land acquisition through to civil works, a strategic funding solution ensures continuity and confidence throughout the process.
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.
