Construction Facility No Pre-Sales Stage 4 Covid-19 Lock Down Melbourne, Victoria $11,000,000

Construction Facility No Pre-Sales Stage 4 Covid-19 Lock Down Melbourne, Victoria $11,000,000


Development Finance Partners (DFP) was engaged by its builder/developer client to procure funding for a 4 level, 19 apartment project to be constructed in suburban Melbourne.



While the client was seeking a competitive funding package with no pre sales. The escalation of the Covid-19 crisis in Melbourne meant that many target lenders were reducing lending limits and/or loan to value ratios and/or were not prepared to proceed without pre sales.

Limits on the number of tradesmen on site and potential disruptions in accessing materials were also concerns.  Plus, valuation firms and market commentators were in general marking down property values in line with ongoing difficult economic conditions. 



DFP coordinated a collaborative negotiation between its capital partner, the client, their respective lawyers and the appointed Valuer and Quantity Surveyor consultants, to work through the various challenges, resulting in a successful finance approval based on a 62% Loan to Net Realisable Value, with no pre sales required. 

Financial close has recently taken place and construction is underway. 



“We approached DFP in late 2019 to seek some options for funding on the basis that we wanted to start construction with no pre-sales. There was an offer on the table, but the impact of time and the onset of the Covid crisis meant the original offer was pulled. DFP offered to assist us in an alternative solution and found another financier willing to extend a funding offer similar to the original deal, fundamentally, with the no pre-sale condition that we were originally after.

DFP were able to pinpoint a suitable financier who was willing to support and back the Developer’s ongoing development pipeline within the context of the macro-economic funding challenges bought on by Covid.

DFP being able to obtain an LVR in excess of 60% was also significant positive commercial result for the client given the current economic climate.

DFP have an extensive network of capital partners that can be utilised specific to a developer’s project needs. 

Given the current very dynamic and shifting funding climate, DFP are a valuable partner who understand who is in the market, for what type of project and developer on any given day. Given their agility and closeness to the activity across the Australian Seaboard, they are critical partner in these unprecedented time.” 

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