An experienced regional developer engaged Development Finance Partners (DFP) to secure funding for the next phase of an ongoing residential project. With a strong record delivering quality housing across Victoria, the client sought a tailored finance solution that supported current delivery while maintaining flexibility for future growth.
Located in Warrnambool on Victoria’s southwest coast, the current stage comprised 7 townhouses and 15 apartments within a growing residential precinct. Combining modern architecture with thoughtful design, it delivers high-quality homes that supports the region’s continued growth and meeting strong demand from owner-occupiers and downsizers.
Key Metrics
Loan Amount: $8.26 million
Construction was already underway when the client’s existing lender requested a substantial equity contribution to continue funding. This unexpected requirement created immediate pressure to refinance while maintaining progress on site.
The client needed a funding solution that combined refinance and construction finance within one facility at a high leverage position. Achieving an 80% LVR first mortgage was critical to preserving cash flow, yet well beyond typical market appetite for regional residential developments.
The project’s mix of townhouses and apartments added further complexity, requiring a lender confident in both product types and capable of funding mid-build. Balancing risk, maintaining delivery momentum, and securing high-LVR construction finance in a regional location demanded precise structuring and strong lender engagement.
To address these challenges, DFP developed a funding strategy that instilled lender confidence while meeting the client’s leverage objectives. A detailed review of presales, valuations, and local demand confirmed the project’s strong fundamentals and capacity to perform under a high-LVR structure.
A single refinance and construction facility was then negotiated to align with the project’s stage and sales profile. The arrangement featured flexible drawdown terms linked to construction milestones, ensuring steady cash flow and uninterrupted progress on site.
An $8.26 million first mortgage facility at 80% LVR was approved and settled promptly, enabling the client to refinance existing debt and continue construction without delay. The structure maintained project momentum, safeguarded liquidity, and ensured seamless funding across both townhouse and apartment stages.
The high-LVR position provided flexibility and financial breathing room, removing the need for secondary or mezzanine finance. With a single, well-structured facility in place, the developer was able to focus on delivery and plan confidently for future stages.
This case highlights how strategic funding solutions can transform the delivery of regional residential developments. By combining refinance and construction finance within one high-LVR facility, the developer-maintained momentum, protected cash flow, and advanced the project without delay.
For developers operating in regional markets, particularly those managing staged or mid-construction projects, early engagement with Development Finance Partners can open access to funding options beyond standard market parameters. Working with an experienced property development finance specialist provides the flexibility, lender confidence, and support needed to keep projects moving even in challenging conditions.
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.