Finance acquisition and construction
Combine site or land debt with controlled construction drawdowns for an approved or approval-ready development.
GROSS REALISATION VALUE (GRV) LOANS · AUSTRALIA
Structure property development finance against the lender-accepted value of the completed project and a fully costed delivery plan. Selected options may be assessed up to 80% of GRV, with loan amounts up to $50 million.
Place GRV within the complete capital stack: review our Property Development Finance Australia matrix covering leverage, cost, equity, presales, delivery and exit.
Accepted GRVIndependent completion value
Total costFully loaded development budget
Borrower equityVerified capital contribution
ExitSales or refinance supported by evidence
WHAT GRV REALLY MEANS
GRV stands for gross realisation value: the combined gross sale value of the completed lots, dwellings or units in a development, before project costs and other deductions. It is not the project profit or the amount available to borrow. For finance assessment, the lender uses its accepted valuation rather than relying only on the developer’s forecast.
A GRV-based structure still has to fund a credible project. Lenders reconcile the valuation with total development cost, equity, construction risk, presales, contingency, forecast margin and the exit. The lower of the applicable GRV and cost constraints commonly determines the facility.
10 completed dwellings × $850,000 each = $8.5 million forecast GRV.
This illustrative total is before development costs and other deductions—not $8.5 million of profit or an approved loan. The lender may accept a different value. If it comes in below your forecast, read our development finance valuation-shortfall guide for the next evidence and funding checks.
Explore the relationship between value, costs and equity using our development feasibility calculator.
Combine site or land debt with controlled construction drawdowns for an approved or approval-ready development.
Assess whether the lender-accepted GRV supports a larger facility than a cost-only structure, subject to all other limits.
Compare bank, non-bank and private options against leverage, presales, timing, experience and documentation.
UNDERWRITING BEYOND THE END VALUE
A reliable application links valuation, cost, equity, execution and repayment. A high projected GRV cannot compensate for an incomplete budget or weak delivery plan.
Important: up to 80% of GRV is not a target or guarantee. Lenders may adopt a lower GRV, impose a separate loan-to-cost limit, exclude costs, require presales or additional equity, reduce the facility or decline the application. Interest, fees and contingency may form part of total exposure.
INITIAL PROJECT CHECK
A GRV-based application may warrant assessment where the end value and the path to achieve it are both supported.
FROM VALUATION TO FIRST DRAW
Share the site, approvals, feasibility, costs, forecast GRV, equity, experience, timing and exit.
Test loan-to-GRV and loan-to-cost alongside interest, fees, contingency, margin and presale requirements.
The selected lender reviews valuation, QS, legal, borrower, builder, project and market evidence.
Complete conditions, settle the facility and release construction funds against verified progress.
TWO DIFFERENT CREDIT CONSTRAINTS
Loan-to-GRV measures exposure against the completed value. Loan-to-cost measures exposure against what the project will cost to deliver. Lenders commonly apply both.
| FEATURE | GROSS REALISATION VALUE | TOTAL DEVELOPMENT COST |
|---|---|---|
| Measures | Aggregate gross completion value | Fully loaded project cost |
| Primary evidence | Valuation and market sales | Feasibility, contracts and QS |
| Key risk | Market and valuation movement | Cost overruns and omissions |
| Ratio | Facility ÷ accepted GRV | Facility ÷ accepted TDC |
| Credit outcome | The lower permitted facility commonly constrains the loan | |
Hypothetical example only: assume a lender accepts a completed GRV of $10 million and eligible total development costs of $8 million. For this calculation, assume limits of 70% of GRV and 80% of accepted costs. These percentages are assumptions—not quoted terms or a statement of lender policy.
The cost limit therefore reduces the calculated facility by $600,000 compared with the GRV-only figure. On these simplified assumptions, $1.6 million of the accepted $8 million budget must come from equity or another lender-approved source. That is not necessarily a new cash contribution: verified equity already invested may be recognised, subject to lender assessment.
Actual funding needs depend on accepted cost definitions, existing debt, interest and fee treatment, contingency, drawdown conditions and costs outside the accepted budget. The full facility is not necessarily available at settlement, and a lender may approve less or decline the project.
WHAT TO PREPARE
Consistency matters. The valuation, feasibility, build program, presales and exit should describe the same project and timeline.
Site and ownershipContract, title, valuation, existing debt and entity structure
Approvals and plansPlanning permit, drawings, specifications and authority status
Detailed feasibilitySources and uses, TDC, GRV, interest, fees, tax and contingency
Build informationContract, program, builder profile, insurance and QS material
Market and sales evidenceValuation, comparables, stock schedule, presales and selling strategy
Borrower and exitExperience, financial position, equity source and repayment pathway
FREQUENTLY ASKED QUESTIONS
These answers are general guidance. Every project and lender policy is different, and no figure is an approval or offer.
GRV is the lender-accepted aggregate value of the completed development, commonly based on the expected gross sale value of the finished lots, dwellings or units before selling costs, finance costs, tax and other deductions. The lender’s valuation—not the developer’s forecast—drives the credit assessment.
Selected scenarios may be considered up to 80% of lender-accepted GRV. The actual limit can be lower and is also constrained by total development cost, valuation, location, presales, borrower experience, contingency, interest treatment, forecast margin and lender policy. Approval is not guaranteed.
Funding requests from smaller developments through to loan amounts up to $50 million may be assessed. The available amount depends on the accepted GRV, total development cost, equity, security, approvals, builder, program, presales where applicable and exit.
GRV estimates the aggregate gross value of the completed project. Total development cost adds the land, construction, consultants, statutory charges, interest, fees, contingency, marketing and other project costs. Lenders commonly apply both limits, with the lower result constraining the facility.
Not always. Some lenders require qualifying presales, especially for larger or higher-density projects. Selected specialist lenders may consider reduced-presale or no-presale structures where location, equity, feasibility, market evidence, experience and exit are strong.
A clear submission usually includes site and ownership details, approvals, plans, feasibility, total development cost, valuation or market evidence, building contract, QS material, borrower and builder experience, presales if applicable, equity source, entity documents and a defined repayment strategy.
START WITH THE FEASIBILITY
Tell us what you are developing, the forecast completion value, total development cost and the capital required. We will explain the information needed, likely constraints and the next practical step.
Use our contact form to share the project location, forecast GRV, development costs, available equity, funding amount and proposed exit.
Continue to the contact form →
All finance is subject to lender assessment, due diligence and approval. Fees, charges and eligibility criteria apply.