Acquisition and hold facilities for development sites across the ACT and regional NSW—structured around the planning stage, holding period and path to construction or sale.
Land banking finance is debt arranged to acquire and hold a development site ahead of construction—most readily on zoned or approved sites, and selectively where there is a clear, evidenced development path. Because land is less liquid than a completed asset, the structure and loan-to-value reflect that risk.
Our land-banking work sits within our specialist commercial and development finance practice. We start with the planning position, holding period and credible path to construction or sale, then identify a facility that fits the site and borrower.
The right facility depends on where the site sits between acquisition and its next capital event.
Capital to hold development sites while approvals progress or a planned sale is prepared. Interest may be capitalised where lender policy and the facility allow, preserving near-term liquidity while increasing the outstanding balance and total funding cost.
Funding to acquire englobo, subdivision or infill sites, structured around the planning position, intended hold and credible exit.
Short-term acquisition finance with a planned pathway to construction refinancing once approvals and other lender conditions are satisfied.
A review of an existing land facility where an updated valuation, planning milestone or revised exit may support a different lender or structure.
Land lending is driven by liquidity, planning evidence and the proposed exit. These inputs shape the available leverage, term and conditions.
Zoned and approved sites generally attract broader lender interest. Rezoning, unzoned land or early-stage planning is assessed more cautiously.
Lenders review location, comparable sales, demand, servicing and any constraints affecting the site’s marketability.
Land is usually less liquid than a completed asset, so leverage is assessed conservatively and varies by planning status and exit.
Approval, construction refinance, parcel sale or outright sale needs to be specific, evidenced and realistic for the proposed term.
Interest, land tax, GST, professional costs and contingency requirements are assessed against borrower liquidity and the facility structure.
Experience, financial strength, adviser team, planning pathway and ability to manage the site influence lender confidence.
We prepare the credit case before a lender is approached, keeping the facility aligned to the site’s planning and exit pathway.
We examine the planning position, intended hold, valuation evidence, borrower position and the pathway to sale or construction.
We work through the timing, debt service, interest treatment, taxes, professional costs and contingency requirements.
We target lenders whose policy and credit appetite suit the site, planning risk, borrower and proposed exit.
We coordinate the lender process with valuers and project advisers, maintaining clear conditions through to settlement.
We frame the holding period, risk and exit before taking the proposal to credit.
The principal who helps structure the facility remains involved through the lender process and settlement.
Canberra-based coordination across lenders, valuers and project advisers, informed by local market and planning context.
Lenders typically require the contract, valuation evidence, planning and zoning information, borrower financials, a clear exit strategy, holding-cost analysis and details of the project team. Requirements vary by site, borrower and lender.
Interest may be capitalised where lender policy and the facility allow. This can preserve near-term liquidity, but it increases the outstanding balance and total funding cost. The proposed term and exit need to support that structure.
Before DA approval, valuers generally consider the current planning position, zoning, permitted use, comparable land evidence, constraints and the credibility of the proposed pathway. A future development outcome may not be adopted until it is sufficiently supported.
It may be possible to refinance a land facility into construction debt once approvals, plans, feasibility, builder information, valuation and lender conditions are in place. It is a new credit assessment rather than an automatic conversion.
Common exits include a sale of the site, an approved subdivision sale, refinance into construction debt or repayment from other verified sources. Lenders will assess the timing, evidence and contingency around the proposed exit.
Timing depends on the quality of the information, valuation, planning complexity, lender process and legal documentation. A well-prepared site and borrower package generally moves with fewer avoidable questions, but approval timing is lender-specific.
Treatment of GST, land tax, interest, consultant fees and other holding costs depends on the facility and lender policy. These costs should be modelled early because they affect total debt, liquidity and the exit requirements.
Unzoned land or a rezoning pathway generally introduces more planning and timing risk. This can narrow the lender pool, reduce leverage, increase equity requirements and require stronger evidence of the proposed planning outcome and exit.
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Second-ranking debt used to complement senior construction or development capital.
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Specialist and short-term lending options where timing or complexity requires another path.
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Acquire-and-hold finance for development land across the ACT and regional NSW.
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Tell us about the land, planning position, holding period and intended exit. We will outline a practical finance pathway.
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