Background

An experienced property investment group settled the site 12 months earlier with the intention of selling. As market conditions evolved, they recognised rising demand and value uplift within the senior’s lifestyle and retirement living sector. This shift presented an opportunity to significantly enhance the site's exit position by securing a new Development Approval for a senior’s living community.

Project Overview

The group identified that repositioning the site toward seniors living would allow them to unlock a much higher realisable value. The proposed DA pathway offered stronger fundamentals, broader buyer appeal, and a clear advantage over the original strategy. To move forward, they required a refinance structure that supported planning expenditure, extended their loan runway, and acknowledged the increased valuation potential created by the repositioning strategy.

Key Metrics

Loan Amount: $13,736,000
LVR: 68%
Loan Term: 12 months
Interest and Fees: Fully capitalised
Equity Release: Provided at settlement

The Challenge

The client required a refinance solution as their existing loan term was expiring. To pursue  the enhanced strategy of a seniors living DA, they needed a financier willing to extend  leverage beyond the previous 65% LVR, capitalise interest and costs, and provide additional  equity to fund the re-lodgement of permits.

DFP’s Strategic Solution

DFP leveraged its established lender network to identify a financier comfortable with the  site's fundamentals and the seniors living repositioning strategy. We secured a refinance at  an increased 68% LVR, with a 12-month term, fully capitalised interest and fees, and close  to half a million dollars in equity release. This structure allowed the client to pursue the  optimal DA outcome without injecting further capital.  

Results and Benefits

The refinance was completed in alignment with the rollover date of the expiring facility. The  client now has a full 12-month runway to progress their seniors living DA submission,  maximising the site's future value and enhancing their strategic disposal position.  Importantly, no cash contribution from group resources was required, preserving liquidity  while enabling transformational value uplift.  

Conclusion and Advice

This case highlights the importance of aligning finance strategy with evolving market  opportunities. Developers who proactively identify alternate use cases and seek finance partners willing to support repositioning can significatly enhance project outcomes. Strategic refinancing particularly with capitalised terms and equity release can create  the breathing room required to unlock major value gains. 

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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.