Background
The client is an experienced property developer with a history of identifying and securing strategic land opportunities across Victoria. Their focus includes acquiring sites with strong long-term residential potential within emerging growth corridors and progressing them through the planning pathway toward future development outcomes.
Project Overview
The project involved the acquisition of a substantial 12-hectare future residential landholding within Melbourne’s growth corridor.
Positioned within a recognised growth market, the site presented strong long term residential development potential and represented a strategic acquisition opportunity. Its underlying land fundamentals and scale aligned with the developer’s broader land banking objectives, creating the opportunity to secure a high potential asset with future development upside.
Key Metrics
Loan Amount: $12.18 million
Location: Melbourne
Security: 12.21ha englobo residential development site
LVR Against Valuation: 70%
The Challenge
The developer required acquisition funding within tight settlement timeframes for a substantial englobo landholding that remained within the planning progression phase.
Despite meaningful work already undertaken toward future planning outcomes, many traditional lenders remained cautious due to the absence of formal planning approval. This limited lending appetite and created funding uncertainty at a critical stage of the acquisition process.
The challenge was not simply securing leverage. The developer needed a lender capable of taking a commercial view of the opportunity, recognising the site’s underlying land value, strategic positioning, and future development potential while remaining comfortable with planning related risk and the proposed exit strategy.
DFP’s Strategic Solution
Development Finance Partners moved quickly to identify lenders capable of taking a more commercial view of the transaction.
Rather than relying on a traditional bank assessment focused primarily on formal planning approval, DFP approached lenders willing to assess the site’s underlying land value, planning progression, and long-term residential development potential.
DFP structured a private acquisition facility with interest capitalisation, enabling the developer to complete the acquisition while preserving sufficient runway to continue progressing planning outcomes and future refinancing strategies.
The structure delivered both funding certainty and execution speed, ensuring settlement requirements were met while supporting the developer’s broader land banking and growth strategy.
DFP’s lender relationships and deep understanding of development finance were instrumental in sourcing a capital partner comfortable with the proposed strategy despite the project remaining within the planning progression phase.
Results and Benefits
Development Finance Partners successfully secured a $12.18 million acquisition facility, enabling the developer to complete the acquisition within the required settlement timeframe and secure control of a strategically positioned landholding.
The facility provided the funding certainty needed to continue progressing the planning pathway while preserving future development flexibility and broader project objectives.
More broadly, the transaction demonstrated how alternative capital solutions can support strategically positioned projects where traditional lending appetite may be constrained. Through speed of execution, commercial structuring, and lender alignment, DFP delivered an outcome that may not have been achievable through conventional banking channels alone.
Conclusion and Advice
Strategic land acquisitions and planning stage projects often fall outside the lending parameters of traditional banks. However, opportunities with strong underlying fundamentals can still attract funding when structured appropriately and aligned with the right capital partner.
For developers pursuing englobo acquisitions or land banking opportunities, early engagement with an experienced finance advisor can materially influence lender appetite, funding certainty, and execution outcomes.
What this Means for Developers
• Planning stage projects can still secure funding with the right capital strategy
• Lender alignment and execution timing are critical for englobo acquisitions
• Commercial lenders may assess planning related risk differently from traditional banks
• Early structuring can preserve flexibility and strengthen future refinance pathways
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.
