Finance structured around project delivery.
Development finance needs to reflect approvals, construction, sales and the timing of expenditure. Regalis considers the project as a whole before discussing the funding structure.
The project, the funding and the exit
A project can appear well funded at the start and still face a shortage later if costs, timing or sales assumptions change. The assessment examines the funding required to reach completion and the evidence supporting that estimate.
Staged drawdowns should be explained alongside the documents and checks required to release funds. The borrower needs to understand how construction progress, variations and remaining costs affect availability.
The exit deserves the same attention as construction. Sales timing, settlement conditions and residual stock options should be considered before the project depends on them.
Look at the whole project funding requirement
Development assessment connects land, approvals, design, builder arrangements and a costed programme. The project budget should identify construction and non-construction expenditure, finance costs, contingencies and the equity required from the sponsor. Explain what has already been spent and which funding sources are available to meet the remaining expenditure.
Changes in cost and time can affect the amount needed before sale proceeds arrive. Drawdown conditions, progress verification and cost-to-complete reviews therefore matter as much as the initial facility size. The funding discussion should also address completion evidence, titles, settlement dependencies and the treatment of unsold property. Distinguish signed sales from forecast demand. A plan that depends entirely on uninterrupted delivery needs careful examination.
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
Are funds usually drawn all at once?
A construction facility may release funds in stages subject to the agreed conditions and supporting progress information. Understand what must be supplied before each drawdown and allow for the practical timing of specialist reviews.
What if the project budget changes?
Raise the change promptly with an updated budget, cost-to-complete position and funding plan. Variations may affect available funds, sponsor equity requirements or other conditions. Additional funding is subject to a separate assessment and cannot be assumed.
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.