Background

The client is an experienced property developer focused on delivering premium residential projects within tightly held inner-city Brisbane markets. Their approach centres on securing high-quality sites and maximising end value through strong design outcomes, efficient delivery, and attention to detail.

Project Overview

The project involved the construction of a luxury residential development on a prime inner-city Brisbane site. The design was tailored to appeal to prestige buyers, with high-end finishes, considered layouts, and strong architectural presentation forming a core part of the overall positioning.

The project was delivered under an owner-builder approach, allowing the developer to retain a high level of control across design, trade engagement, and delivery, ensuring the outcome aligned closely with their vision.

The completed development held an end value exceeding $10 million.

Key Metrics

Total loan amount of $5.85 million
First mortgage construction funding facility
70% LVR against gross realisation value on an ex-GST basis
No presales required

The Challenge

The project required a funding solution that could accommodate an owner-builder construction approach while recognising the significant progress already achieved on site.

At the time of engagement, construction was approximately two-thirds complete. The developer had contributed substantial equity into the project but required additional liquidity to maintain momentum through the remaining stages of delivery.

Owner-builder projects sit outside standard construction lending frameworks. Without a fixed-price building contract or head contractor, lenders assess delivery risk differently, placing greater emphasis on experience, trade management, and program execution.

This dynamic, combined with progress payments being reimbursed in arrears, created pressure around working capital. Deposits for materials, trades, and forward scheduling needed to be funded upfront, increasing the risk of delays if liquidity constraints were not addressed.

The project therefore required a funding structure that could recognise value already created while supporting the final stages of construction without interruption.

DFP’s Strategic Solution

DFP undertook a detailed assessment of the project to position it clearly and credibly to the lending market. This included preparing comprehensive reporting to demonstrate construction progress, remaining costs, contingency allowances, and realistic delivery timeframes.

Close coordination with the valuer and quantity surveyor was critical to validating the developer’s capital contribution and ensuring completed works were accurately reflected in the funding assessment. This allowed the lender to take confidence in both the current position of the project and the pathway to completion.

Following a targeted lender process, DFP secured a first mortgage construction facility totalling $5.85 million, structured at 70% of end value.

The funding structure was designed to release a portion of the developer’s invested equity while improving working capital availability between drawdowns. Interest was applied only to funds drawn, ensuring that funding costs aligned with construction progress and cash flow requirements.

Results and Benefits

The final funding solution provided immediate liquidity and restored certainty across the remaining stages of the project.

By unlocking capital already invested into the development, the developer was able to fund deposits, secure trades, and procure materials in advance, maintaining continuity of works and avoiding delays.

Improved cash flow reduced pressure between lender drawdowns and supported a more efficient construction program through to completion. At the same time, preserving capital allowed the developer to retain flexibility for future opportunities, strengthening their broader pipeline.

The successful outcome reinforced the value of a structured funding approach and led to an ongoing relationship, with the developer returning to DFP for support on subsequent projects.

Client Testimonial

“DFP took a proactive approach from the outset and communicated clearly throughout the process. They managed the lenders, consultants, and risk positioning, which allowed me to stay focused on delivering the project with confidence that funding was secure.”

Conclusion and Advice

Owner-builder projects require lenders to assess risk beyond standard construction finance models. Without the right structure, even well-progressed developments can face unnecessary liquidity pressure.

This case highlights the importance of aligning funding with the realities of how a project is delivered. With clear reporting, informed lender selection, and a structure designed around actual delivery conditions, developers can unlock value already created, maintain momentum, and complete projects with greater control and confidence.

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.