Background

An emerging developer engaged Development Finance Partners (DFP) to secure funding for the acquisition of a regional site and the staged delivery of a residential subdivision. With a clear vision and growing experience in the industry, the client aimed to maintain momentum as development approvals progressed, and market conditions evolved. Having already secured an initial landbank facility through DFP, they once again partnered with the team to support the next phase of delivery.

Project Overview

Located in Queensland’s Fraser Coast region, the project involved subdividing a substantial land parcel into 16 residential lots to meet the area’s growing demand for affordable housing. As the development evolved, the client amended the Development Application (DA) to enable a staged delivery. The revised design allowed the sale of front lots with existing road frontage in stage one, generating cash flow to fund stage two. This structure created a more sustainable and de-risked pathway to project completion, balancing sales momentum with funding certainty.

Key Metrics

Loan Amount:  $1.95 million 

LVR Against Valuation: 60%

Presales: Nil

Equity Contribution: Nil

The Challenge

As the developer awaited final council approvals for the amended DA, their existing landbank facility approached expiry. The permit changes, while strengthening the project’s long-term position, introduced unavoidable delays that placed pressure on the funding timeline.

To move forward, the client required stage one construction funding to complete essential works on the front lots. However, traditional construction finance was not a viable option due to the modest capital requirement and the time needed to set up a drawdown structure with ongoing reporting and quantity surveyor oversight. The challenge was to secure a flexible and efficient solution that would enable construction to proceed without additional equity or administrative burden.

DFP’s Strategic Solution

DFP took a pragmatic approach, focusing on the client’s need to de-risk the project and maintain progress. After assessing the uplift in land value generated by the amended DA, DFP proposed a renewed landbank facility structured as a fully drawn cash advance.

This solution provided an immediate injection of funds and an extended term, allowing the developer to commence stage one construction without the restrictions of a traditional construction loan. By removing the need for staged drawdowns and external reporting, DFP streamlined the process while ensuring full compliance and security for the lender.

The result was a tailored funding structure that delivered flexibility, speed and certainty. By aligning finance with the project’s timeline and market dynamics, DFP gave the developer control over delivery and expenditure while keeping the funding process efficient and cost effective.

Results and Benefits

Through DFP’s strategic restructuring, a renewed 60% LVR landbank facility was secured with an equity release component to cover stage one completion costs. This enabled the client to continue development seamlessly without the need for additional capital.

By structuring the funding as a cash advance, DFP eliminated the need for quantity surveyor involvement and complex drawdowns, reducing both costs and administration. The borrower could begin construction immediately and manage their own delivery schedule.

The sale of the completed lots from stage one will generate proceeds to pay down the facility, reducing residual debt carried into the stage two construction phase. This forward-looking structure not only simplified funding but also positioned the developer to enter the next stage with lower exposure and stronger equity.

Conclusion and Advice

This case highlights how strategic funding design can enhance flexibility and efficiency in project delivery. For developers managing regional or staged subdivisions, adaptable finance structures such as landbank facilities with equity release or cash advance features can be critical to maintaining momentum when project conditions change.

By planning early for funding transitions and leveraging strong lender relationships, developers can de-risk their projects, avoid unnecessary delays and retain control over outcomes. DFP’s approach to flexible capital structuring ensures that small to medium developers can respond confidently to evolving market and project conditions while achieving successful results.

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.