Background
An experienced entrepreneur and business owner with a diversified property investment portfolio approached DFP to refinance a high-cost private land bank loan on a semi regional industrial site in New South Wales. The client had secured a pre-lease with a specialised transport company and was progressing the required CDC approval. To maintain momentum, they needed a financier who understood niche industrial assets and could support both the immediate refinance and the future construction phase.
Project Overview
The project involved a two-stage funding pathway. The first requirement was to refinance the existing land bank facility which was eroding project feasibility due to its high holding costs. The second requirement was to ensure a clear, reliable construction finance strategy that aligned with the planned 2026 commencement. Due to the specialised nature of the asset and its location, lender options were limited, and the client needed a tailored solution that recognised the strength of the pre-lease and long term industrial demand.
Key Metrics
Loan Amount: $2.68 million
LVR: 60%
Pre-lease: Specialised Transport Company
The Challenge
The client’s existing loan carried a high interest rate which placed pressure on cash flow while approvals were still being progressed. Lender appetite was restricted due to the specialised industrial nature of the site, and many financiers were unwilling to commit to a construction pathway without full CDC approval already in place. The client required both an immediate refinance and the confidence that a construction facility could be executed once approvals were finalised, without revisiting the market or risking delays.
DFP’s Strategic Solution
DFP leveraged its network to identify a localised non-bank lender experienced in niche industrial assets and semi-regional locations. The facility was structured in two components. The first tranche delivered a refinance at 60% LVR which immediately removed the costly private lender. The second component provided pre-approved construction finance terms to start in 2026, giving the client a fully mapped funding pathway from land bank to build. This approach reduced uncertainty, aligned with the project timeline, and recognised the strength of the secured pre-lease.
Results and Benefits
The refinance settled successfully, eliminating the existing high-rate facility and significantly lowering holding costs during the CDC approval period. The agreed construction terms reduced execution risk and ensured that future funding would be readily accessible once approvals were complete. The streamlined structure provided certainty across both stages of the project and strengthened the overall feasibility of the industrial development.
Conclusion and Developer Insights
This case demonstrates how specialised industrial assets can be funded competitively when transactions are structured and positioned early.
Securing pre-leases and establishing a clear funding pathway prior to construction reduces execution risk and strengthens feasibility. When combined with a strategic refinance, it provides continuity between land bank and construction phases while maintaining project momentum.
The key takeaway is that funding should be aligned to both tenant strategy and delivery timing. When structured correctly, it improves certainty, preserves flexibility, and supports the progression of niche industrial developments.
What This Means for Developers
- Pre-leases can strengthen funding outcomes and reduce execution risk
- Early alignment between land bank and construction finance improves continuity
- Strategic refinance supports transition into construction
- Structured funding improves certainty for specialised industrial projects
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.
