Background

The client is an established investment group with decades of experience across the Australian residential property sector. Their expertise spans land acquisition, subdivision, and staged residential development, with a strong focus on capital efficiency and disciplined project delivery.

Project Overview

The project involved a staged residential subdivision in a de-identified residential market. The client was progressing toward the first stage of construction and had secured a presale to support early debt reduction.

At this stage of the project lifecycle, the funding structure needed to bridge the transition between land banking and construction while preserving capital and maintaining momentum.

Key Metrics

• Loan amount: $7.3 million
• LVR against valuation: 65%

The Challenge

An existing land bank facility was approaching expiry as the project prepared to move into its initial construction phase. While a super-lot within the site had been presold, settlement could not occur until subdivision works were completed.

This created a timing mismatch between the expiring facility, the completion of civil works, and the receipt of sale proceeds.Without a tailored solution, the client faced the risk of a forced equity injection or disruption to the project timeline.

The challenge was to extend funding in a controlled way that allowed subdivision works to be completed, enabled settlement of the presold lot, and reduced debt ahead of construction funding.

DFP’s Strategic Solution

DFP structured a short-term rollover facility to extend the existing land bank loan and provide funding to complete the required subdivision works. This approach created a defined timeframe that allowed the presold lot to settle before transitioning into construction finance.

The rollover structure was selected to manage risk, preserve capital, and maintain the project’s delivery schedule. It also ensured the funding solution aligned with the client’s broader staging strategy.

DFP leveraged its lender relationships to secure swift approval and align the facility terms with the client’s commercial objectives and timing requirements.

Results and Benefits

The final structure delivered a $7.3 million rollover facility at a 65% LVR. The facility resolved the immediate expiry risk and allowed fees and interest to be capitalised for the duration of the rollover period.

Subdivision works for the presold lot were completed, enabling settlement to proceed as planned. Sale proceeds were then applied toward debt reduction ahead of the transition into Stage 1 construction funding.

Most importantly, the structure removed the need for an immediate equity injection and ensured continuity through a critical stage of the project lifecycle. The client was able to progress toward construction with funding aligned to delivery milestones.

Client Experience

The client valued DFP’s strategic approach and ability to structure a solution that addressed timing constraints without compromising capital efficiency. DFP acted as a trusted advisor, managing lender engagement and ensuring the funding structure supported the project’s staged delivery strategy.

Conclusion and Developer Insights

This case highlights how funding structures need to adapt during the transition between land acquisition and construction, particularly in subdivision projects where timing mismatches are common.

Differences between facility expiry, civil works delivery, and presale settlements can create pressure if not addressed early. In these scenarios, short-term rollover and hybrid funding structures provide a mechanism to preserve capital, manage risk, and maintain project momentum.

The key takeaway is that structuring funding across transition phases is critical. When aligned correctly, it allows developers to bridge timing gaps without disrupting delivery or compromising capital position.

What This Means for Developers

• Timing gaps between land, civil works and presales can impact funding continuity
• Short-term rollover structures can bridge transitions between funding phases
• Hybrid funding improves flexibility during pre-construction and delivery stages
• Early structuring reduces pressure and supports smoother project progression

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.