Background
The client is an experienced Perth based property developer with a strong understanding of strategic land positioning and long-term redevelopment opportunities across Western Australia.
With a focus on acquiring and repositioning well located infill sites, the developer held a premium site within an established inner metro Perth precinct. The objective was to maintain control of the asset while progressing future redevelopment planning aligned with broader market demand and precinct growth.
Project Overview
The project involved the refinance of two adjoining properties forming a strategic inner metro development site with future medium density redevelopment potential.
Positioned within an established Perth growth corridor, the site benefits from strong surrounding infrastructure, transport connectivity, and increasing residential demand. The borrower required a refinance facility that would provide funding certainty while preserving flexibility around future development timing and strategy.
Key Metrics
Loan Amount: $3,525,000
Loan to Value Ratio: Approximately 75%
Security: First ranking mortgage over both titles
Loan Term: 12 months with minimum six-month commitment
Purpose: Refinance facility for strategic development site
The Challenge
The borrower required a refinance solution that would provide sufficient runway to continue progressing the site’s longer-term redevelopment strategy.
While the asset held strong underlying value and redevelopment potential, traditional lenders remained cautious due to the development-oriented nature of the security and the borrower’s need for a fast and flexible outcome.
The transaction required a lender comfortable with inner metro development land, short-term refinance requirements, and an exit strategy aligned with future project outcomes. Timing was also important, as the client wanted to avoid unnecessary delays that could impact broader planning and repositioning objectives.
Securing the right funding structure required balancing leverage, speed, and flexibility while ensuring the facility aligned with the commercial realities of holding and repositioning a strategic development site.
DFP’s Strategic Solution
Development Finance Partners structured and arranged a first mortgage refinance facility totalling $3.525 million secured against both titles.
The facility was structured at approximately 75% LVR against the independent valuation and tailored to support the borrower’s short-term holding and future redevelopment strategy.
Key components of the structure included a 12-month loan term, capitalised interest to preserve cash flow, and a first ranking mortgage position across both properties. The facility created a streamlined funding structure, simplifying the borrower’s position while providing greater operational flexibility moving forward.
DFP leveraged its network of private and non-bank lenders to source a funding solution capable of moving efficiently while recognising the long-term redevelopment fundamentals underpinning the asset.
Importantly, the selected lender understood the value of strategic infill development sites within constrained metropolitan markets and was comfortable assessing the broader project potential rather than relying solely on conventional residential lending parameters.
Results and Benefits
The refinance settled successfully, allowing the borrower to consolidate the site under a more streamlined funding structure.
The facility provided funding certainty and preserved flexibility around future redevelopment outcomes, enabling the client to continue progressing strategic plans for the site without disruption.
By securing a refinance solution aligned with the project’s underlying redevelopment potential, the borrower-maintained control of a strategically positioned inner metro asset during a period where traditional bank appetite for development style land refinance remained constrained.
For experienced developers, the transaction demonstrates how tailored non-bank funding can play a critical role in maintaining momentum, protecting strategic holdings, and positioning projects for future value creation.
Client Testimonial
TBC
Conclusion and Advice
This transaction demonstrates how flexible non-bank funding can support experienced developers holding strategic redevelopment sites where traditional lender appetite may be constrained.
Even well-positioned infill assets can encounter refinance challenges when lenders take a conservative view on development-focused security or short-term holding strategies. When structured correctly, however, developers can secure the funding certainty needed to preserve control of valuable sites and continue progressing long-term project outcomes.
The key takeaway is that refinance outcomes are often determined by lender alignment, asset positioning, and the strength of the overall funding strategy rather than the security alone.
What this Means for Developers
• Strategic infill sites may require funding solutions outside traditional bank policy
• Refinance flexibility can preserve long-term redevelopment opportunities
• Non-bank lenders can provide faster execution for time-sensitive transactions
• Strong lender alignment is critical when funding redevelopment-focused assets
• The right structure can create runway while planning or repositioning strategies evolve
• Funding certainty allows developers to maintain control of strategic sites without forced sale pressure
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.
