Background
The client is an experienced Melbourne-based developer with a strong track record across large-scale land subdivision and master planned communities.
Following planning approval on a major site, the objective shifted to restructuring the capital stack to align with the next phase of delivery.
Project Overview
The project comprises an approved 656 lot master planned subdivision within a major Victorian growth corridor, supported by strong population and infrastructure fundamentals.
With planning secured, the project entered a transitional phase between landholding and construction, requiring a funding structure that recognised valuation uplift while providing runway toward Stage 1 delivery.
Key Metrics
Loan Amount: $32,500,000
Loan to Value Ratio: circa 75%
Facility Type: Land bank rollover with senior and mezzanine
Loan Term: 9 months
Presales: Not required
The Challenge
Expiring first and second mortgage facilities created immediate refinance pressure post approval.
At the same time, traditional lenders showed limited appetite to refinance layered debt against a large undeveloped site prior to construction. This created a gap between lender risk frameworks and the project’s true value following planning uplift.
The transaction also required recognition of increased land value, while providing sufficient funding runway to progress design, approvals, and pre commencement works ahead of construction.
DFP’s Strategic Solution
DFP aligned with incumbent lenders who had supported the project through preplanning, leveraging their familiarity with the site and sponsor capability.
A combined senior and mezzanine structure was implemented to refinance and extend existing facilities, while increasing total funding capacity.
Controlled equity release was structured against planning uplift, allowing capital to be drawn progressively. Holding costs were capitalised, preserving liquidity and reducing near term cash flow pressure.
This approach-maintained continuity, preserved ownership, and created a clear pathway toward construction funding.
Results and Benefits
DFP secured approximately $32.5M in combined facilities over a 9-month term.
The structure stabilised the capital stack, removed immediate refinance pressure, and unlocked equity in a controlled manner.
The developer was able to progress toward construction readiness with improved liquidity, stronger positioning, and greater flexibility around future lender selection.
Conclusion and Developer Insights
This case highlights how the post approval phase often requires a complete repositioning of the capital stack before a project can transition toward construction.
Even strong subdivision projects can face funding pressure when existing facilities expire and lender appetite shifts between land banking and delivery phases. When structured correctly, however, developers can use planning uplift to improve leverage, preserve liquidity, and maintain project momentum without forcing premature capital events.
The key takeaway is that timing, lender alignment, and structure materially influence how efficiently a project progresses toward construction readiness.
What This Means for Developers
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Planning uplift can create opportunities to restructure and improve leverage
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Post approval funding requires different lender appetite than preplanning debt
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Structured senior and mezzanine solutions can preserve liquidity and maintain control
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The way a project is positioned can materially impact timing and future funding flexibility
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.
