---
title: DFP Secures $5.06M Loan for 10 Townhouses, No Presales at 75% LVR
description: DFP structures 75% LVR construction finance with no presales, enabling NSW townhouse developer to reduce equity and maintain growth momentum.
---

[Insights • DF Partners ](https://dfpartners.com.au/insights)

# [DFP Secures $5.06M Loan for 10 Townhouses, No Presales at 75% LVR](https://dfpartners.com.au/insights/dfp-structures-75-lvr-construction-finance-no-presales)

 Written by [Admin](https://dfpartners.com.au/insights/author/admin) | Apr 21, 2026 9:30:00 PM

## **Background**

The developer has a proven track record delivering residential townhouse projects across regional New South Wales. Over several completed developments, they have built a disciplined approach to site selection, construction management and capital deployment. Liquidity remains a core focus. Each funding decision is assessed not just on the current project, but on how it supports future acquisitions and long-term growth.

 

## **Project Overview**

The project comprises a 10-townhouse development in a growing regional corridor of New South Wales. Demand from owner occupiers and investors remains steady, supported by population growth and continued infrastructure investment in the broader area.

The funding brief was commercially driven. The developer required a refinance of the existing facility, full construction funding and no presale condition. At the same time, they wanted to reduce equity exposure while keeping senior leverage within standard market risk parameters.

**Key Metrics**

Senior construction loan: $5.059 million  
Senior leverage: 70% of Gross Realisation Value  
Mezzanine facility: $240,000  
Total leverage: 75% of Gross Realisation Value  
Presales required: None  

## **The Challenge**

Senior construction lenders continue to apply conservative leverage thresholds. A standard first mortgage construction facility would have required a higher equity contribution. That would have tied up capital and limited the developer’s ability to pursue new site opportunities.

In addition, the developer did not want a presale requirement. Presales can restrict sales timing, reduce pricing flexibility and introduce additional market pressure. Removing that condition was important to maintaining control over the project’s delivery and exit strategy.

The objective was clear. Refinance the existing position, fund construction at disciplined senior leverage levels, reduce equity locked into the deal and secure approval without presales

## **DFP’s Strategic Solution**

DFP structured a layered capital solution that aligned lender discipline with the developer’s growth strategy.

First, DFP secured a senior [construction facility](https://dfpartners.com.au/services/construction-loans) at 70% of Gross Realisation Value. This maintained strong credit positioning and remained within standard construction lending parameters.

Second, DFP introduced a targeted mezzanine facility of $240,000. Rather than increasing senior leverage beyond market comfort, this tranche reduced the developer’s upfront equity requirement while preserving a balanced capital stack.

DFP coordinated both facilities concurrently, managing lender engagement and documentation in parallel to deliver a seamless refinance and construction outcome.

## **Results and Benefits**

The layered structure provided immediate funding certainty and enabled construction to proceed without delay.

Importantly, the solution reduced equity tied up in the project. Preserving liquidity allowed the developer to continue acquiring new sites and maintain momentum across their broader pipeline.

The absence of a presale requirement also strengthened commercial flexibility. The developer retained control over sales timing and pricing strategy while progressing construction with confidence.

The funding structure supported both the successful delivery of this 10-townhouse development and the ongoing scalability of the developer’s portfolio.

 

## **Client Testimonial **

“DFP delivered a well-structured funding solution and managed the process seamlessly. Their clear communication and proactive coordination of both senior and mezzanine lenders gave us confidence to move forward while preserving capital for future projects.”

 

### **Conclusion and Developer Insights**

In the current construction finance environment, capital structure determines how efficiently developers can scale.

Relying solely on senior construction debt often increases equity requirements and limits growth. In contrast, a blended approach combining senior and mezzanine finance can improve leverage while maintaining lender alignment.

The key difference is not access to funding, but how that funding is structured. Well-positioned deals preserve liquidity, support future acquisitions, and allow developers to maintain momentum across multiple projects.

### **What This Means for Developers**

- Senior-only funding can increase equity requirements and constrain growth
- Blended senior and mezzanine structures can improve leverage and capital efficiency
- Funding structure directly impacts liquidity and pipeline scalability
- The way a deal is positioned influences both approval and long-term outcomes

 

 

*Image: Concept render for illustrative purposes only*

> ##### Whatever the size of your development plan, DFP have a wealth of experience and strong relationships to help you succeed. [Contact us](https://dfpartners.com.au/contact-us/) to explore your tailored finance options.

[View full post](https://dfpartners.com.au/insights/dfp-structures-75-lvr-construction-finance-no-presales)

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