Background
An emerging developer had recently completed an industrial project in Bundaberg. The development consisted of five industrial units, and with construction finalised, the client was preparing to progress to their next acquisition. They engaged DFP to understand how their completed stock could be structured into a facility that supported both the sell down and their broader development goals.
Project Overview
The client held three industrial units as residual stock and required a finance structure that created more time to complete the sales process without pressure. They also needed the facility to release capital that would assist in preparing for their next project. The objective was to secure a 70% LVR solution that aligned with realistic regional sales rates and provided the flexibility to manage the units strategically.
Key Metrics
Loan Amount: $1,785,000
LVR Against Valuation: 70%
Outcome: Residual stock facility with a sub-$1M release to support the next project
The Challenge
Securing a high-quality residual stock facility in a major regional market required careful structuring. Although the industrial units were strong assets, lenders were cautious due to the location. Regional markets often involve longer selling periods and a more conservative approach to gearing.
The key challenge was to create a structure that delivered the client’s desired LVR while accommodating the natural sales timeline for industrial units in Bundaberg. The facility needed to support cash flow for the next acquisition yet remain aligned with achievable sell down rates. DFP had to demonstrate market depth, realistic absorption, and strong asset quality to secure the right outcome.
DFP’s Strategic Solution
DFP began by engaging a valuer with strong knowledge of the Bundaberg industrial market to ensure the assessment reflected local demand, market depth, and sales velocity. This helped establish confidence with the chosen lender and supported the targeted 70% LVR.
DFP then structured a tailored residual stock facility that refinanced the remaining units and delivered a meaningful sub-$1M equity release to strengthen the client’s next acquisition strategy. This was particularly important for an emerging developer, as accessing capital from completed stock is often the key to maintaining momentum between projects.
The facility allowed the client to reduce debt immediately as each unit sold and did not impose a minimum term requirement. This created a structure that mirrored real market conditions and gave the client the freedom to respond to sales opportunities without unnecessary restrictions.
Results and Benefits
DFP secured a $1.785 million residual stock facility across the three remaining units. The funding created a significant uplift that empowered the client to progress with planning for their next site and manage immediate holding requirements with confidence. The sub-$1M equity release became a pivotal step in allowing the developer to advance to their next opportunity without delay.
The 12-month term provided the flexibility required to time each sale appropriately and benefit from market uplift where achievable. The structure also allowed the client to lease the units in the interim, generating income that strengthened the financial position and enhanced the appeal of each asset before sale.
The outcome gave the developer a clear and supported pathway from project completion to their next development opportunity while maximising the value of their completed stock.
Conclusion and Advice
This case demonstrates the importance of carefully structured residual stock finance, particularly for emerging developers who rely on completed assets to fund their next project. When handled correctly, completed stock becomes a powerful tool for accessing capital, maintaining momentum, and strengthening overall project sequencing.
By working with DFP, the client benefited from regional market insight, strong lender relationships, and a finance structure designed to match the real sales environment for industrial assets in Bundaberg. The sub-$1M equity release played a central role in supporting the client’s next acquisition and demonstrated how strategic structuring can accelerate future growth.
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.
