Funding a Supermarket Development on a Multi-Tenant Site – SW Sydney
The client owned a substantial parcel of land in South West Sydney, housing several older commercial buildings where multiple tenants were operating. The vision was to demolish the existing structures and redevelop the site into a brand-new supermarket to better serve the community and improve asset yield.
The Challenge
Despite the asset’s strong value, the client couldn’t secure sufficient leverage from their bank to move forward with the redevelopment. The bank’s conservative approach to construction and development funding meant the LVR offered wasn’t enough to cover demolition, planning, and build costs.
With time-sensitive lease expiries and project timelines in place, a flexible solution was urgently required.
Our Approach
We understood that the value of the site — and the long-term vision — warranted a smarter approach.
We engaged a private lender with experience funding mid-scale commercial development and who was comfortable offering a higher LVR than the banks, provided a strong feasibility and planning package was in place.
We worked closely with the developer to obtain a feasibility study, coordinate the valuation, and prepare a well-structured submission that positioned the project for quick assessment and sign-off.
The Outcome
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- Loan Type: Private Development Loan
- Security: Mixed-use commercial site with existing tenants
- Purpose: Demolition and construction of new supermarket
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- LVR: Higher than major bank thresholds (exact figures withheld)
- Turnaround Time: ~20 days including feasibility, valuation, and docs
- Result: Client secured the capital needed to commence demolition and redevelopment without diluting equity or requiring additional guarantors
Key Takeaways
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- Funded via private lender offering superior leverage
- End-to-end turnaround in approximately 20 days
- Feasibility-led submission reduced back-and-forth with lender
- Future value of the site was central to the lender’s decision
- Client avoided delays and retained full control of the development
