Modern Apartment Building

RESIDUAL STOCK FINANCE

RESIDENTIAL, COMMERCIAL & HOUSE BLOCK RESIDUAL STOCK FINANCE

Residual Stock Facilities can be highly valuable to developers who are looking to recoup some cash to move to the next project whilst undertaking a controlled sell down of their project’s assets. Funding is available on a gross realisation basis rather than in one line and is usually up to 70% ex GST for a period of up to 18 months.

As the name implies, residual stock finance allows for the funding of completed but unsold development stock to allow the developer time to sell it. It is particularly useful if the developer uses private lenders or mezzanine finance and wants to refinance the debt. 

Mezzanine financing ensures you a highly flexible arrangement and a perfect option for growing companies with a strong cash flow, seeking business expansion funding.

LVR up to 75%
Rates from 3.49% for the single stock to 5.98% for multi-units. 
Fees from 0.75% for non-bank, and no-fee bank 
TERM 24 to 36 months
INTEREST: Can be paid monthly or prepaid for full or part term.

Recent Example Residual Stock Melbourne 
Amount: $9,570,000
Rate: 6.24% 
LVR: 65%  
Term: 12 months 
Purpose was to allow a developer an orderly sell-down of stock, rather than needing to discount.

Recent Example Mezzanine financing Sydney 
Amount: $5,750,000
Rate; 12% 
LVR: 75% 
Term: 18 months 
Developer used the funds to acquire another site before the current project was completed. 

Recent Example Mezzanine financing Brisbane
Amount: $2,750,000
Rate; 13% 
LVR: 72.5% of GR 
Term: 15 months 
Developer wanted to stretch their equity across a number of projects , their preference was to get major bank funding rather than a non-bank stretch senior.