DIG Capital was engaged by a seasoned land developer seeking funding for a pre-development site. The developer required financing to complete the property acquisition and guidance on preserving cash reserves. After in-depth discussions and a comprehensive review of the developer’s portfolio, an opportunity was identified to structure the debt in a way that minimised the equity contribution required for settlement. Additionally, DIG Capital collaborated closely with the developer to ensure a more appropriate financing facility would be available once permits were secured.

When DIG Capital was approached for pre-development funding, the developer was already in the process of securing permits for the site. The funding needed for settlement was intended to be short-term, bridging the gap until the permits were obtained, at which point more favourable terms could be negotiated. DIG Capital worked closely with the developer and their team throughout the permit acquisition process, which ultimately proved successful. Leveraging expertise in land financing and the anticipated value increase post-permit, DIG Capital devised a strategic solution. This involved replacing the initial debt—comprising both senior and mezzanine financing—with a new facility that offered more favourable terms and lower costs, all achieved within six months of the settlement.

The developer successfully preserved their capital by securing short-term funding to complete the purchase. DIG Capital’s hands-on approach facilitated the transition to more cost-effective, long-term financing, reducing overall expenses and safeguarding the developer’s capital. This allowed the developer to focus on negotiating favourable presales for the site, which will be realised upon subdivision. Additionally, the property’s valuation uplift generated a cash return to the developer, providing the financial flexibility to pursue future acquisition opportunities.