Englobo land

Englobo land is a large parcel held prior to subdivision, generally valued on a broad-acre or rate-per-lot basis reflecting its development potential rather than as a single, immediately usable site, and typically the starting point for a subdivision or broader development project. Because englobo land's value depends heavily on what it can ultimately be approved to yield, lenders financing it lend conservatively and often want at least a preliminary planning assessment, if not a lodged or approved development approval, before advancing significant funds against it. A land bank facility is the product most commonly used to hold englobo land through the planning process, with the loan sized against current, unapproved value rather than the site's potential post-approval value, and typically refinanced once approval is secured and construction or further subdivision can proceed. Valuing englobo land accurately requires genuine development expertise, and lenders in this space generally instruct valuers experienced specifically with broad-acre and pre-approval sites rather than a standard residential valuer.

Related

Land bank loans · Subdivision · Land banking