Preferential Equity – Medium density development

Preferential Equity – Medium density development

Noble Park Victoria – 91% Total Development Cost


  • Client had numerous projects commenced / ready to be commenced and had significant equity tied up in the projects
  • Their model is to presell to 100% debt cover to secure bank funding on all the projects
  • Client required relatively small amounts of Preferential Equity relative to the market (ie normal minimum $5.0m)


  • Development Finance Partners was engaged to provide an equity solution
  • Work up a Borrowing/ Security structure
  • Funding model required for (PE)  with Capital and Coupon returns in line with the PE Market
  • Model return on Equity to the Client based on the Senior and PE layers (this actually demonstrated the higher return on Equity by using PE)
  • Provide PE financing


  • Development Finance Partners provided the  Preferential Equity  to 91% TDC
  • Development Finance Partners facilitated within 14 days.
  • The Client now has the required equity to enable leverage into another development

What the client says

“From a developer perspective it allowed us to access locked equity on order to fund our next project. The well-structured deal, which was circa a few million dollars, was not readily available from banks and DFP offered a viable solution.
“Preferred equity is certainly a solution that we will use again to unlock the funds we need to support future growth,” Nicholas Smedley

Leave a comment

Your email address will not be published. Required fields are marked *

For expert advice:

Sydney Office

Level 3, 31 Alfred St
Sydney NSW 2000
P / 02 8916 6246

Melbourne Office

Level 30/35 Collins Street,
Melbourne VIC 3000
P/ 03 8692 0082

Brisbane Office

Level 18, 175 Eagle Street
Brisbane QLD 4001
P / 07 3041 4136

See all contact details >

Insight Categories /

Topics /

洞察类别 /


Share on Facebook
Share on LinkedIn
Tweet about this on Twitter