Background

An experienced property developer with a substantial land portfolio approached Development Finance Partners (DFP) to secure additional funding. With multiple projects at different stages of planning, approvals, and construction, the group needed a strategic solution to maintain momentum. Central to the funding strategy was a DA approved development site in Tasmania.

Project Overview

The Tasmanian site provided a strong security base for structuring the facility. While it was a key part of the arrangement, the developer’s focus was broader, ensuring group wide funding so that several projects could continue advancing without disruption. Timely access to capital was essential to prevent delays and protect opportunities across the portfolio.

Key Metrics

The Challenge

Despite a strong track record, the developer faced an immediate funding gap. The facility needed to sit behind an existing non-bank senior lender on the Tasmanian site, which created complications. Many lenders were hesitant to sit behind the senior lender. Second mortgage arrangements are often more complex and carry higher risk. Without a solution, progress across the developer’s projects risked being delayed and valuable opportunities could have been lost.

DFP’s Strategic Solution

DFP structured a $4 million second mortgage facility secured against the Tasmanian site. The funding was released through progressive drawdowns, meaning the developer only paid interest as funds were needed. This approach reduced costs and kept cash flow under control.

DFP also worked closely with the senior lender and the incoming second mortgage provider to agree on clear terms covering repayment order, security, and how the loan would be repaid. By leveraging trusted lender relationships and demonstrating the strength of the project and the client’s track record, DFP secured development finance that would not have been available through mainstream channels.

Results and Benefits

The second mortgage facility provided the capital needed to keep projects moving without disruption. Because the funds were drawn in stages, interest costs were kept to a minimum and cash flow stayed manageable.

Importantly, the agreement between both lenders ensured the structure was secure and workable, removing roadblocks that might have otherwise stalled progress. With funding in place, the developer could focus on delivering their broader portfolio while maintaining momentum across multiple sites.

Client Testimonial

“Working with DFP made a real difference to our project. The team understood the urgency of our funding requirement and structured a facility that worked with our needs, not against them. The ability to release funds in stages gave us breathing room on cash flow, and DFP’s effort in dealing with both lenders meant we did not lose momentum. We are very appreciative of the support provided and the outcome achieved.”

Conclusion & Advice

This case highlights how a well-structured second mortgage facility can be a powerful tool for developers who need additional funding to keep projects on track. By releasing funds in stages and securing agreement between multiple lenders, DFP created a solution that was both cost effective and practical.

For other developers, this demonstrates that tailored funding solutions are available even when traditional lenders hesitate. With the right partner to negotiate and structure the deal, complex challenges can be turned into workable outcomes that protect momentum and open up new 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.