Background
A young Brisbane property developer approached DFP as they prepared to move from smaller residential projects to something more complex. After successfully delivering a series of boutique builds, they were ready to take the next step with their first multi-unit residential project in South-East Queensland
Project Overview
The development consisted of 16 contemporary apartments in Sunnybank, one of Brisbane’s most sought-after metropolitan suburbs. Strong demand for residential living in the area created an exciting opportunity for the developer to expand their portfolio. With construction already half complete, securing the right finance became critical to maintain momentum, manage completion costs, and bring the apartments to market on schedule.
Key Metrics
Loan Amount: $6.1 million debt facility
LVR Against Valuation: 62%
Loan to Cost: 70%
The Challenge
Getting finance once construction is already underway can be difficult. Many lenders hesitate to step into a project mid-build because they see it as higher risk. For the Sunnybank development, this hesitation meant fewer funding options were available.
Another challenge came from differing views on the cost to complete the project. The Quantity Surveyor’s estimates pointed to one level of funding, while the developer’s own approach showed they could reduce costs by taking on parts of the construction themselves.
Without a flexible finance structure, the project risked cash flow pressures, delays, and even the chance of stalling before completion.
DFP’s Strategic Solution
DFP began with a detailed review of the developer’s position and long-term objectives. Three potential funding pathways were modelled to provide the liquidity needed to complete the project.
After careful analysis, the preferred solution was to secure a construction loan against the partially completed Sunnybank apartments. This option offered the most efficient and practical structure to cover completion costs and keep the project moving forward.
By presenting a clear proposal to suitable capital partners, DFP identified the right lender and negotiated terms that aligned with the developer’s requirements.
Results and Benefits
The $6.1 million construction facility delivered the capital required to complete the project with confidence and met the allowances set by both the Quantity Surveyor and the lender. The structure aligned closely with the actual funding needs of the development, making it both efficient and cost-effective.
With the facility in place, the developer maintained construction momentum, managed completion costs without interruption, and secured a stable financial position throughout delivery. The funding also supported their long-term strategy of holding the apartments as investment stock, strengthening the portfolio for future growth.
Beyond the numbers, the developer gained certainty, control, and the confidence to take on a larger project knowing they had the right finance partner by their side.
Conclusion and Advice
This project shows how DFP’s expertise in property development finance and strong relationships with lenders can unlock strategic solutions. By structuring a construction facility against a partially completed development, DFP enabled the successful completion of a 16-apartment project in Sunnybank.
For developers looking to take the next step in their journey, the right finance partner can transform challenges into opportunities and provide the confidence to deliver projects successfully.
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.
