An experienced developer with a long family history in property engaged Development Finance Partners (DFP) to provide construction finance for a 26-lot subdivision project. While the client had completed several smaller investments previously, this was the first project of this scale undertaken in their own capacity. Council approvals were creating a delay and the strategy had to quickly change since the existing land bank debt was expiring shortly. DFP pivoted and obtained an interim land bank solution which provided additional time for the client to finalise all approvals without the requirement of paying any monies towards the settlement of the previous land bank facility.
Located in Victoria’s Latrobe Valley, the site was originally purchased for $1.9 million and has since achieved Development Approval for a 26-lot residential subdivision. Designed to meet the growing demand for affordable, high-quality housing in the region, the project is positioned to appeal to both local families and new residents drawn to the area’s lifestyle and accessibility. The development represents a significant step forward for the client, transitioning from smaller-scale property investments to a more substantial residential project with long-term growth potential.
Key Metrics
Loan Amount: $1.405 million
LVR Against Valuation: 64%
Loan to Purchase Price: 74%
As the project moved through its final planning and approval stages, the client’s existing land bank loan neared expiry. The timing placed pressure on the developer to act quickly and secure a new funding arrangement before the previous facility lapsed.
The key challenge was to secure a refinance that recognised the value uplift achieved since the original purchase and allowed the client to roll into a new facility without contributing any additional cash. This required a lender prepared to acknowledge the site’s improved position following Development Approval while maintaining a streamlined approval process to meet critical timeframes.
Drawing on its strong lender network and deep understanding of property valuation dynamics, DFP worked with a reputable valuer and a supportive lender who recognised the increased site value achieved through DA approval.
A first mortgage refinance was structured on an interest-capped basis, enabling the client to replace the existing loan without any new equity contribution. The facility provided additional time to finalise design and construction documentation while positioning the client for a smooth transition into the next funding phase.
DFP successfully refinanced the existing facility before its expiry, securing a higher valuation and stronger loan position for the client. The refinance recognised the site’s uplift in value, eliminating the need for any further capital input.
This proactive solution provided the client with valuable breathing room to complete project preparations and move confidently toward construction. The new structure simplified costs, improved cash flow, and maintained project momentum without disruption.
Nick and the DFP team provided a thorough and dynamic service with a high level of acumen. The clear and concise communication received from Nick, throughout the entire process, provided us with great comfort.
This case demonstrates the importance of recognising value uplift opportunities when transitioning between funding stages. By engaging an experienced broker early, developers can capitalise on improved valuations and avoid unnecessary capital commitments. Strategic refinancing not only protects project continuity but also builds a stronger foundation for future construction success.
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.