Development Finance Partners (DFP) was engaged by a Perth-based development group to secure construction funding for a three-part residential project in North Perth, WA. The client’s strategy involved renovating an existing home, subdividing the rear block, and constructing a new dwelling on the subdivided land.
The developer and builder were related entities who had previously collaborated on multiple projects. However, their owner-builder structure created funding roadblocks with major lenders. Recognising DFP’s expertise in working with non-bank funders and complex deal structures, the group turned to DFP for a flexible finance solution.
The project involved:
Renovation of the existing front property
Subdivision of the rear land parcel
Construction of a new home on the rear lot
To maximise gearing and reduce capital outlay, the clients offered additional property as security, allowing DFP to enhance the equity position and secure the required facility.
Key Metrics
Loan Amount: $2,400,000
Loan Type: Development Finance
LVR: 65%
Term: 12 months from first drawdown
Security: Project site + additional property
Location: North Perth, WA
Major lenders were reluctant to fund owner-builder structures, even for experienced operators
The clients needed to fund multiple project phases under a single facility
Required use of cross-collateralisation to reduce upfront equity injection
Timing and flexibility were essential to align construction and subdivision milestones
DFP structured a $2.4 million development facility at 65% LVR, using both the project site and an additional property as security. By leveraging its trusted capital partner network, DFP provided a lender that:
Accepted the owner-builder structure under a Tri-Partite agreement
Allowed for a phased funding drawdown, aligned with the project stages
Approved the structure within a tight timeframe, ensuring no project delays
This solution enabled the clients to retain control of the build, maximise leverage, and proceed with confidence.
$2.4 million facility secured for renovation, subdivision, and new build
65% LVR approved, supported by additional security
Tri-Partite agreement allowed for owner-builder delivery
Funding structured to support multiple project phases
Capital contribution reduced, supporting stronger project cash flow
This case highlights DFP’s ability to deliver tailored development finance for owner-builders and related development entities. By structuring a flexible, multi-stage facility backed by additional security, DFP enabled the clients to move forward with confidence in a tightly held inner-Perth suburb.