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Ok. But as per my question, what if there was enough cash in the SMSF to develop? Or at least say to get a DA to sell it? This is as much for me as a strategy. I've been told I can't substantially improve a property in an SMSF, but is the only restriction on borrowing money- if the deed allows?

Is it possible to hav a trust deed which permits such changes to the asset? Presumably the SMSF would need cash- or I have heard of a JV between an SMSF and a person.

One possibility (depending on your circumstances) is to buy the property through a self managed super fund. This is one situation where you can actually legally benefit from property in your super fund.