Background
The client was an experienced property developer with a proven track record delivering successful residential developments throughout Brisbane. With multiple projects successfully completed, the developer continued to identify strategic land acquisition opportunities that would support future residential development.
Project Overview
The project involved the acquisition of a strategically located Brisbane development site for future residential development.
The developer's objective was to secure and hold the site while preserving as much equity as possible for future planning, approvals and development costs. To support this strategy, the client required a land bank finance facility that would maximise borrowing capacity, minimise the upfront capital contribution and provide the flexibility to progress the project when market conditions aligned.
Key Metrics
Loan Amount: $1,365,300
Location: Brisbane
Project Type: Land Bank Finance
LVR Against Valuation: 75%
Presales: Not Applicable
The Challenge
The developer's priority was to preserve as much equity as possible while securing the acquisition of a strategic Brisbane development site.
Obtaining higher leverage for land bank finance can be challenging, with many lenders taking a more conservative approach to undeveloped land. The funding structure needed to maximise borrowing capacity while preserving capital for future project costs and maintaining the flexibility to support the developer's long-term growth strategy.
DFP's Strategic Solution
Development Finance Partners leveraged its extensive lender network to source a funding solution aligned with the developer's land banking strategy and long-term objectives.
DFP secured a land bank finance facility at 75% LVR, enabling the developer to minimise the upfront equity required to complete the acquisition while maintaining a straightforward funding structure tailored to the project.
By maximising leverage, the facility preserved valuable capital that could be deployed towards future planning, approvals and development costs, providing greater financial flexibility as the project progressed. The solution also positioned the developer to continue pursuing future acquisition and development opportunities without unnecessarily tying up equity in the land purchase.
Results and Benefits
Development Finance Partners successfully structured a $1.37 million land bank finance facility at 75% LVR, enabling the developer to secure the Brisbane development site while minimising the upfront equity required for the acquisition.
The funding structure preserved capital for future planning, approvals and development costs, providing greater financial flexibility as the project progressed. By aligning the finance solution with the client's broader development strategy, DFP helped position the developer to confidently pursue future opportunities while maintaining momentum across their project pipeline.
Conclusion and Advice
A successful land banking strategy isn't just about securing the right site, it's also about securing the right funding structure.
For experienced property developers, tailored land bank finance can improve capital efficiency, preserve equity for future project costs and provide the flexibility to act on new opportunities as they arise. Working with a specialist development finance advisor helps ensure the funding strategy supports both the immediate acquisition and the developer's longer-term growth objectives.
What This Means for Developers
- Higher leverage can reduce the upfront equity required for site acquisitions
- Preserving capital improves flexibility for future planning and development costs
- Tailored land bank finance can support long-term portfolio growth
- The right funding strategy helps position developers for future opportunities
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.
