The client is an experienced Australian property developer with a long-standing track record across land subdivisions, commercial assets, and mixed-use developments. The developer follows a disciplined land acquisition strategy, securing well-located sites early and managing capital carefully while planning frameworks mature.
A core part of the client’s approach is maintaining funding flexibility throughout extended rezoning periods. This allows planning milestones to progress without forcing premature capital deployment or disrupting the broader development pipeline.
The subject site is a 12.18-hectare landholding located approximately 32 kilometres from the Melbourne CBD. Positioned within an Urban Growth Zone, the site is progressing through a Precinct Structure Plan rezoning process that is expected to support future industrial development outcomes as the precinct transitions toward employment-based uses.
At the time of funding, the land was not yet rezoned. Value was underpinned by the advancement of the PSP process and the surrounding precinct’s evolution rather than near-term development approvals. The project was therefore structured as a long-term landbank investment, requiring a funding solution aligned with extended planning
Key Metrics
The client’s existing 12-month landbank facility was approaching expiry, with incremental but legitimate progress achieved within the Precinct Structure Plan process. As is common with large-scale rezoning projects, progress was tied to external planning authorities and extended timelines, creating perceived uncertainty from a lender perspective.
Rezoning-dependent land is often treated conservatively by lenders due to its reliance on future planning outcomes to unlock value. To secure a further twelve-month landbank rollover, Development Finance Partners needed to clearly demonstrate that the project’s progression was genuine, measurable, and consistent with comparable PSP precincts within the surrounding growth corridor.
At the same time, the client sought to minimise any additional cash equity contribution. Without a revised funding approach, the renewal risked requiring new equity or more restrictive servicing terms that would reduce flexibility during the landholding period.
Development Finance Partners engaged a Melbourne-based valuation firm with specialist expertise in the relevant Precinct Structure Plan area. This ensured the updated valuation accurately reflected current market conditions and appropriately recognised soft equity uplift attributable to genuine planning progression.
DFP worked closely with the incumbent lender to reposition the credit narrative, clearly articulating the steps completed within the PSP process, the sponsor’s demonstrated experience, and the strategic importance of the site within the broader precinct. This reframing addressed concerns typically associated with rezoning-dependent land and provided clarity around the project’s long-term trajectory.
To improve cash flow efficiency during the holding period, DFP negotiated the use of additional soft equity uplift to partially capitalise interest. This allowed the borrower to prepay the remaining interest balance rather than servicing quarterly in advance, aligning the facility structure with the client’s long-term landbank strategy.
Development Finance Partners secured a $14.35 million landbank facility at 69% LVR, assessed against the updated valuation rather than the original purchase price. This captured more than $4.6 million in soft equity uplift generated since acquisition, significantly reducing the client’s equity requirement.
By rolling the facility with the existing lender, the client avoided unnecessary refinance costs and maintained continuity with a funding partner already familiar with the asset and its rezoning pathway. The renewed landbank structure ensured uninterrupted progression through the Precinct Structure Plan process.
The extended facility provides the developer with sufficient runway to continue engaging with council, advance planning milestones, and retain full optionality over a strategically positioned landholding. This positions the client to deliver a future industrial development across the 12.18-hectare site as the precinct transitions toward employment-based uses.
This case study highlights how soft equity uplift can materially strengthen a developer’s funding position for long-term landholdings progressing through rezoning processes. As planning milestones advance and market conditions evolve, updated valuations can play a critical role in reducing equity requirements and extending landbank runway.
For developers managing PSP or rezoning-dependent sites, the key lesson is the importance of working with structured property finance specialists who understand planning frameworks, coordinate specialist valuations, and communicate progress clearly to lenders. When executed effectively, this approach preserves capital, maintains funding continuity, and supports long-term industrial development strategies.
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.