Gross Realisation Value (GRV)
Gross Realisation Value (GRV) is the total projected sales revenue from a completed development — the sum of all individual lot or unit sale prices. In Australian development finance, GRV is the anchor metric: lenders express LVR and senior debt limits as a percentage of GRV, and it is the first number a credit assessor looks at.
Why It Matters
GRV determines how much a lender will fund. If your three-townhouse project has a GRV of $3M (three units at $1M each), and the senior lender caps at 60% of GRV, your maximum senior facility is $1.8M. Every development feasibility starts with GRV — it flows into LTC, profit margin, and the lender's risk assessment.
How It Works
- A registered valuer assesses the expected sale price of each completed unit or lot.
- GRV = sum of all individual sale prices at completion.
- The senior lender typically funds 55–65% of GRV.
- GRV is also used to assess project profit margin — a minimum 15–20% margin on GRV is common lender policy.
Common Use Cases
- Primary underwriting metric for townhouse development finance
- Feasibility modelling for small-lot residential subdivision and multi-unit builds
- Determining senior debt capacity and mezzanine requirements
- Valuation benchmarking against comparable completed developments
Related Switchboard Resources
For valuation guidance, refer to the Australian Property Institute.
How is GRV different from market value?
Market value refers to the value of a single property. GRV is the total combined sales value of all completed units in a development. A three-townhouse project might have a GRV of $3M but each individual unit has a market value of $1M.
Who provides the GRV figure?
A registered valuer provides a GRV estimate as part of the development feasibility or valuation report. The lender relies on this independent valuation, not the developer's own projections.
What happens if actual sales are below GRV?
If sell-down prices fall short of the projected GRV, the developer's profit margin shrinks — and in severe cases, it may affect the ability to fully repay the senior debt and mezzanine facilities.