The client is a respected investment management firm with more than 45 years of experience in the Australian property sector. Specialising in investment and project management, the group focuses on residential development and strategic land acquisitions Australia-wide.
Located within a high-growth outer metropolitan corridor, the sizeable landholding spans nearly 20 hectares and is earmarked for a future residential community of more than two hundred allotments. After acquiring the site and completing a successful rezoning process, the developer advanced into the planning phase to secure Development Approval and prepare for construction funding.
Key Metrics
Loan Amount: $19.14 million (First and Second Mortgage combined)
LVR Against Valuation: 75.6% against valuation
Purpose: Rollover of exisiting facility to capitalise interest and fees for 12 months
Outcome: Extended term secured with mezzanine support to progress DA submission
As the original facility neared maturity, the client needed a rollover that would provide sufficient time to complete and lodge the Development Approval with council. Maintaining momentum without injecting additional equity was essential. The funding needed to include capitalised interest, fees, and holding costs for a further 12-month term to preserve liquidity throughout the planning phase.
Traditional lenders were unwilling to extend finance without an approved Development Approval, leaving a gap that required a flexible structure acknowledging the project’s progress and underlying land value.
Development Finance Partners leveraged established lender relationships to negotiate a rollover facility at a combined loan limit of $19.14 million. The structure incorporated a first mortgage rollover and a mezzanine finance layer from an existing DFP partner, lifting the total LVR to 75.6%
By capitalising interest and fees, DFP removed short term cash flow pressure and allowed the client to focus on completing the Development Approval. This structure preserved ownership, sustained project momentum, and ensured funding continuity through to the planning milestone. Once approval is granted, the site will be well positioned for construction funding and a higher valuation.
The extended facility provided a 12-month funding runway to complete the Development Approval process with confidence and without liquidity strain. Introducing mezzanine finance behind the senior lender enhanced leverage and maintained capital efficiency. This approach strengthened the project’s financial position and set a clear pathway toward future construction finance.
DFP’s tailored solution enabled the client to progress with certainty, preserve cash, and protect returns while maximising the site’s long-term potential.
“The DFP team once again demonstrated their deep understanding of the market and their ability to tailor a solution to our project’s needs. The rollover and mezzanine structure have allowed us to progress our DA with certainty and minimal cash flow impact. We value DFP’s strategic approach and strong lender relationships.”
This case demonstrates how a well-structured rollover facility and mezzanine support can help developers maintain project momentum through the planning phase. By partnering with an experienced property finance specialist like DFP, developers can secure continuity of funding, preserve liquidity, and position their projects for significant value uplift once approvals are achieved.
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.