Case Study
Funding a Supermarket Development on a Multi-Tenant Site – SW Sydney
A redevelopment opportunity that needed more flexibility and more leverage than the bank was prepared to provide.
AI-supported lender matchingBroker-reviewed funding strategyCommercial finance support across Australia
The challenge
Despite the underlying strength of the site, the borrower could not secure enough leverage from the incumbent bank to move confidently into the redevelopment phase. Lease expiries and project timing made delay expensive.
The issue was not a weak asset. It was the gap between what the bank was prepared to do and what the transaction actually required to remain commercially viable.
How the structure moved forward
- A private lender was engaged that could assess the project on asset quality, feasibility, and exit logic rather than a narrow policy box.
- Valuation, leverage, and timing were reframed around the real redevelopment plan.
- The submission focused on the path from demolition and planning through to a bankable end-state.
The Challenge
Despite the asset’s strong value, the client could not secure sufficient leverage from their bank to move forward with the redevelopment. Time-sensitive lease expiries and project deadlines made the problem more urgent.
Our Approach
We engaged a private lender comfortable with a higher LVR, coordinated feasibility and valuation support, and structured a well-positioned submission for quick assessment.
The Outcome
The project moved toward an executable funding pathway with the leverage and commercial judgement needed to support demolition, planning, and build costs.
Case Study
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Read MoreFAQ
Questions borrowers ask before moving
What is the main lesson from this case study?
The right lender pathway can emerge when the deal is packaged around feasibility, leverage, and exit rather than the limits of the first lender's policy.
Can Balmoral compare bank, non-bank, and private lender pathways?
Yes. The first pass is designed to clarify whether the strongest path looks more like a bank, non-bank, or private lending conversation.
Does AI-supported lender matching guarantee approval?
No. It helps organise the scenario and compare lender pathways faster, but lender approval still depends on the deal, the borrower, and the chosen lender's credit process.
Will a broker review the strategy before a funding path is suggested?
Yes. Balmoral reviews scenarios through a commercial finance broker before anything is treated as a serious funding pathway.
Can Balmoral help if timing is urgent?
Yes. Urgent scenarios are common, especially where settlement timing, refinancing deadlines, or lender issues make the first move time-sensitive.
Why It Matters
This development case shows how leverage gaps can stall viable projects
In development finance, the issue is not always whether the project is fundamentally sound. Sometimes the real problem is that the lender providing initial support is too conservative for the next phase. When that happens, the borrower can be left with a real opportunity and an unusable capital structure.
This case is useful because it highlights how project logic and exit visibility can unlock a more appropriate funding path.
- The asset quality was not enough on its own; the funding structure also needed to fit the redevelopment phase.
- Private-capital flexibility can be valuable where project timing and leverage create a bank-policy gap.
- A better-structured submission can materially change how the same project is assessed.