Project Overview

A large block of residential land located in North Auckland required a flexible funding solution to allow the borrower to complete resource consenting for a future subdivision. The land was strategically located in a high-growth corridor, with strong residential demand and favourable zoning, but the client needed to unlock capital to progress the planning phase.

ASAP Finance provided a Land Bank Facility structured to refinance the existing mortgage, fund the consenting process, and capitalise all interest and fees—allowing the client to move through the subdivision consent phase without cashflow pressure.

Loan: $6,000,000
End Value: $12,000,000
Loan-to-value: 50%
Term: 12 months

Client background & challenges

The client was an experienced landowner and early-stage developer seeking to progress a sizable landholding in North Auckland from raw land through to an approved subdivision consent. Although the asset had strong long-term development potential, the client faced several challenges when seeking funding:

  • Banks unwilling to fund early‑stage land projects – without consent in place, banks consider land banking speculative.
  • Servicing and income limitations – the bare land produced no rental income, causing servicing failure under bank criteria.
  • Need for capital to complete resource consent – planning, engineering, surveying, and council fees required upfront funding.
  • Timing pressures – delays in funding would stall progress and risk losing project momentum.
  • Lack of loan flexibility – banks could not provide capitalised interest or flexible drawdowns for early-stage costs.

ASAP Finance’s solution

  • Refinance + further‑advance structure – the $6m facility refinanced the existing mortgage and funded planning costs.
  • Capitalised interest and fees – preserving cashflow during the non-income phase.
  • No servicing requirements – approval based on asset value, zoning, and feasibility.
  • Fast approval and settlement – enabling the resource consent team to begin immediately.
  • A property‑focused approach – assessed practical development potential rather than rigid banking rules.

Outcomes

  • Progressed subdivision consent without delay.
  • Preserved cashflow through capitalised interest.
  • Unlocked material value uplift by moving toward an approved subdivision.
  • Strengthened future development financing options.
  • Provided a 12‑month runway to complete consent and plan next steps.

Why Developers Choose ASAP Finance

  • Speed and certainty of funding.
  • No servicing or pre‑sale requirements.
  • Flexible land bank and development facilities.
  • Capitalised interest and tailored drawdown structures.
  • Pragmatic assessment grounded in real development expertise.

 

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