The Brokerage recently arranged a residual stock facility for a long‑term client following the completion of a strata warehouse industrial development. The facility was secured with a bank, offering significantly stronger pricing than competing non‑bank options.
This funding allows the client to release equity to inject into the purchase of a new development site minimising overall financing costs and cash equity requirements.
Outcome
With many banks retreating from interest‑capitalised residual stock facilities, securing this outcome highlights the strength of our lender relationships and our ability to negotiate outlier results. The low‑fee, bank‑priced structure provides the client with improved liquidity, lower holding costs, and the flexibility to reinvest capital into upcoming projects.
In addition, the borrower receives ongoing cashflow as they retain a portion of the proceeds from the sales of security properties.
Having arranged site acquisition funding, construction funding and now residual stock funding for this project, it enabled us to know this project backwards and tailor the most suitable finance structure at each stage.
The Brokerage partners with clients across their full portfolio and project lifecycle, delivering financing strategies that optimise returns and minimises risk.
Key Details
- Facility Type: Residual stock facility
- LVR (Individual Values): 50%
- LVR (“In One Line”): 63%
- Loan Size: $22,500,000
- Pricing: Sub – 6.50%
- Lender: International Bank
To find out more about how we can help, contact our team today.