The client was a first-time property developer looking to enter the development market through the acquisition of a future subdivision site in regional Queensland. With minimal direct previous development experience, they sought both funding and guidance to help navigate the development process from acquisition through to project delivery.
The project involved the acquisition of a development site in Laidley, Queensland, with plans to pursue a future 23 lot residential subdivision. At the time of funding, the project remained in the early planning stage, with development approval to be obtained during the land bank term.
The client's objective was to secure control of the site, progress planning approvals and establish a pathway toward future construction funding as the project advanced.
Key Metrics
Loan Amount: $480,000
Location: Laidley, Queensland
Project Type: Future 23 lot residential subdivision
Facility Type: Land bank acquisition facility
LVR Against Valuation: 60%
Presales: Not required
Term: 12 months
Securing funding for a first-time developer can be challenging, particularly when the project is located in a regional market and remains at an early stage of the development lifecycle.
In this case, the client had no previous development experience and was seeking to acquire a site without an existing development approval in place. Many lenders view inexperienced borrowers and early-stage land bank opportunities as higher risk, which can significantly reduce available funding options.
The regional location added another layer of complexity. While Laidley continues to experience growth and development activity, lender appetite for regional land bank transactions is typically more selective than for comparable metropolitan projects.
The client also wanted to maximise leverage and minimise their upfront equity contribution while still creating a viable pathway toward future project delivery. Achieving all three objectives required careful lender selection and strategic positioning of the opportunity.
Development Finance Partners undertook a detailed assessment of the client's financial position, objectives and the site's development potential before identifying an appropriate funding strategy.
Recognising that education would be just as important as funding, DFP worked closely with the client to explain the development lifecycle, planning process, lender requirements and the key milestones required to progress from site acquisition through to construction.
DFP then leveraged its lender network to identify funding partners with appetite for regional land bank transactions and borrowers entering the development market for the first time.
The solution involved a 12-month land bank acquisition facility that enabled the client to secure the site while providing sufficient time to progress development approval and prepare for the next stage of the project. Importantly, the structure established a clear funding pathway designed to transition into a future construction facility once approvals and project planning were complete.
By carefully positioning the transaction and addressing lender concerns around experience and location, DFP was able to secure a funding solution aligned with both the project's requirements and the client's long term development goals.
Development Finance Partners successfully secured a $480,000 land bank facility at 60% LVR, enabling the client to acquire the site and commence the planning phase of the project.
More importantly, the transaction provided a structured roadmap for the client's development journey. Rather than simply funding the acquisition, the facility created a staged pathway from land acquisition through to development approval and ultimately future construction funding.
Throughout the process, the client gained valuable knowledge and confidence around property development, lender expectations and project delivery. This foundation positioned them to make informed decisions as the project progresses and supports their long-term growth as a developer.
The successful outcome demonstrates that with the right advice, funding strategy and lender relationships, first time developers can gain access to opportunities that may otherwise appear out of reach.
"DFP provided valuable education, guidance and support throughout the acquisition and early planning stages. Their assistance gave us confidence in both the project and the development process."
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.