Finance the next stage after completion.
Residual stock finance may support completed property while remaining stock is sold or refinanced. Regalis considers the current debt, sales plan and release arrangements for each asset.
REGALIS / BorrowersThe funding discussion after completion
Completion changes the financing conversation. Construction risk may have reduced, but sale timing, pricing, holding costs and concentration remain relevant to the lender and the borrower.
The proposed structure should explain how individual sales reduce the loan, what proceeds may be released and which obligations continue while stock remains. Those arrangements can influence the borrower's sales strategy.
An initial discussion should include the completed project details, unsold properties, current debt position and evidence of recent sales or market activity.
Plan debt reduction around completed property
Residual stock finance concerns completed property that remains unsold or awaits a longer-term arrangement. Establish the completion position, titles, occupancy requirements and any remaining work or defects. A description of the stock should distinguish different property types, contracted sales, available units and any restrictions on disposal.
The facility and sales strategy need to work together. Release arrangements determine what happens to proceeds when individual properties settle and how the lender releases security. Holding costs continue while sales are pending. Explain realistic sales assumptions, marketing costs and the consequences of slower settlements rather than treating completion as the end of the financing risk. Include existing development debt and explain how it would be discharged or refinanced in the proposed transaction.
The process, explained
- 01
Describe the requirement
Start with the amount required, use of funds, timing and source of repayment. Identify the borrower and any broker or adviser involved so communication follows an agreed route from the outset.
- 02
Confirm the funding relationship
The team considers whether the scenario may be assessed for direct funding or through Regalis acting as finance broker. The proposed lender, service provider, costs and responsibilities are explained as the structure develops.
- 03
Review evidence and proposed terms
Detailed assessment can involve financial records, valuation, security review and legal documentation. Read the proposed costs, conditions, payment obligations and exit assumptions together. Raise missing information and changes promptly, before relying on an indicative position.
- 04
Document, settle and monitor
A transaction proceeds only when the relevant decision maker approves it and required conditions are met. After settlement, follow the facility reporting and repayment requirements and discuss material changes before an obligation is missed.
Questions before you proceed
Is this the same as construction finance?
No. It concerns the position after completion, while construction funding focuses on delivery and staged costs. Outstanding work or incomplete titles can affect whether a scenario is properly considered completed stock.
Can every sale leave proceeds available to the borrower?
That depends on the agreed release and repayment arrangements. Some or all proceeds may be required to reduce debt or meet costs before any surplus is released. Understand those mechanics before relying on sales proceeds for another purpose.
Start a considered conversation
A clear initial outline helps identify the next decision and the evidence needed to support it. Include the proposed timing and any complication that could affect the structure. Further information and transaction-specific terms follow through the appropriate assessment process.