The client is an experienced property developer with a strong track record delivering residential and affordable housing projects across Southeast Queensland. Their focus centres on creating quality housing outcomes that respond to growing market demand while maintaining commercially viable project delivery.
Having already progressed the project and commenced construction, the developer required a funding solution capable of preserving momentum and supporting ongoing project execution.
The project involved a nine-storey residential apartment development in Southeast Queensland comprising 47 apartments.
Positioned within a rapidly growing market experiencing strong housing demand and constrained rental supply, the development was designed to deliver accessible, high quality housing outcomes. The project carried an approximate gross realisation value of $28.59 million excluding GST and total development costs of approximately $21.4 million including GST.
A key strength of the project was its fully committed take out arrangement, providing delivery certainty and supporting the overall funding structure. The project was designed to help address increasing demand for housing within a constrained market environment.
Key Metrics
Loan Amount: Senior Debt Facility $18,300,000
Mezzanine Facility: $2,716,000
Total Debt Package: $20,958,000
Total LVR: 73.5%
Loan to Cost: Approximately 75%+ including mezzanine
Presales: 100% committed take out arrangement
Project Size: 47 apartments
GRV: $28,594,000 excl. GST
The transaction became highly complex after construction had already commenced.
The developer had progressed construction works and required a funding solution aligned with the project’s delivery timeframe after the original funding pathway changed.
This created an immediate need to secure replacement capital at a critical stage of delivery.
The partially completed nature of the development further complicated lender engagement. Mid construction transactions often attract narrower lender appetite due to perceived construction delivery exposure, refinance timing pressures, and concerns surrounding project transition risk.
Without a timely funding outcome, the project faced potential disruption to delivery momentum and construction continuity.
With construction already underway, the priority was securing a replacement funding solution capable of preserving project momentum and maintaining delivery continuity.
Given the partially completed nature of the project and compressed timeframes involved, lender appetite was carefully assessed to identify funding partners comfortable with active construction exposure and capable of moving quickly.
Following lender engagement and project assessment, a suitable funding partner was identified based on commercial appetite, responsiveness, and confidence in the project’s delivery framework.
An indicative term sheet was secured within 48 hours, providing immediate certainty that construction could continue without significant disruption.
The transaction then progressed through valuation, quantity surveyor, legal, and lender due diligence requirements, with formal approval achieved approximately two weeks later. Settlement followed within a compressed timeframe, allowing works to continue with minimal interruption.
The outcome reflects the importance of lender alignment, coordinated execution, and experienced structuring when navigating complex construction funding scenarios.
DFP successfully arranged a combined senior and mezzanine funding package totalling $20.958 million, providing sufficient capital to support delivery through to completion.
The facility enabled the developer to maintain construction momentum, continue delivery of 47 apartments, and secure a scalable funding structure aligned with project cash flow and delivery requirements.
The committed take-out structure materially strengthened the project profile from a lender perspective and supported confidence around delivery certainty.
This transaction demonstrates how structured funding solutions can support complex or partially completed developments where conventional lending pathways may be more limited.
This transaction highlights how complex development projects can still secure funding in challenging market conditions when supported by strong project fundamentals, structured capital solutions, and experienced advisory support.
It also reflects the growing role of alternative lenders and layered funding structures in supporting housing delivery across Australia, particularly where projects fall outside conventional construction lending parameters.
• Mid construction projects can still secure funding with the right lender alignment
• Speed of execution is critical when refinancing active construction projects
• Structured senior and mezzanine solutions can preserve delivery momentum
• Strong project fundamentals and committed take out arrangements improve lender confidence
• Early engagement with experienced finance advisors can materially influence project outcomes
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.