Finance for commercial property decisions.
Regalis considers acquisition and refinancing requirements involving commercial and industrial property. We assess the role of the property in the borrower's business or investment plan and the evidence supporting repayment.
REGALIS / BorrowersFinance for premises and property investment
A warehouse used by an operating business raises different questions from an office building held for rental income. Understanding the use of the asset helps identify which information matters most.
For leased property, the assessment may include tenant concentration, lease expiry, vacancy and incentives. For owner-occupied premises, the performance and funding needs of the business become important.
A clear submission connects the property information to the finance purpose. The team can then discuss the structure and whether direct funding or external placement is appropriate.
Connect the property to the source of repayment
For an owner-occupied property, the business using the premises may be the main source of debt service. The assessment considers the relationship between property ownership and the operating entity, current business performance and the costs of occupying and maintaining the property. A purchase should be considered alongside the capital still required to run the business.
For an investment property, rental income needs context. Lease terms, tenant concentration, vacancy, incentives and anticipated capital expenditure can affect the cash available for finance costs. A strong tenant today does not settle the question of what happens at lease expiry. Explain the intended holding period and how the debt would be repaid or refinanced if income or market conditions changed. Provide the tenancy schedule and identify any related-party arrangements.
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
Can an operating business own the financed property?
Structures vary. Explain the proposed owner, the business occupying the premises and their relationship. The assessment and legal documentation need to reflect the actual borrower, security provider and source of repayment.
How is a vacant property considered?
Vacancy changes the evidence required because current rent may not support the facility. Explain the leasing plan, funding for holding costs, any works needed and the alternative repayment source. An expected tenant is not the same as an executed lease.
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.