Additional Financing Solutions for Real Estate Developers

Throughout the lifecycle of a real estate project, financing needs may arise that fall outside the scope of the closed construction financing framework, from land acquisition and planning, through the pre-permit stage, to construction and project completion.

Ruby Finance provides a range of credit solutions tailored to the project’s stage, transaction structure and the developer’s specific needs, including pre-permit financing, equity completion and equity release, bridge loans, and inventory financing. Each solution is structured based on an in-depth assessment of the project, repayment sources and relevant collateral, with the aim of providing developers with greater flexibility in managing their capital and advancing their business activity.

Pre-Permit Financing for Urban Renewal Projects

The unique characteristics of urban renewal projects, including the limited ability to provide real estate collateral at the pre-permit stage, can present a significant challenge for developers seeking financing for project advancement costs. In many cases, developers are required to commit substantial equity to fund these expenses until the building permit is obtained. The pre-permit financing solutions developed by Ruby Finance are designed to support more efficient management and allocation of developers’ equity.

Subject to credit committee approval, pre-permit financing may be secured by various forms of collateral, including pledges over surplus proceeds from the developer’s other projects, contractual rights, corporate guarantees and other forms of security. The financing structure is tailored to the specific needs of the developer and the project.

Secured Financing Solutions for Real Estate Developers

Equity Completion Financing

Equity completion financing enables developers to allocate their equity across a broader portfolio of projects, potentially enhance returns on equity, and make more efficient use of available cash flow.

Under this structure, Ruby Finance provides financing through a loan subordinated to the senior debt. The security package may include a second-ranking mortgage over the project’s real estate rights.

The repayment date is flexible and is determined according to the project’s progress and the timing of the release of project surplus funds by the senior lender.

Equity Release

Ruby Finance provides developers with greater flexibility in allocating and utilizing their capital, supporting more efficient capital management and flexibility in repayment timing.

Equity may be released at different stages of the project, subject to an assessment of the project’s characteristics and the approval of the senior lender. This financing is provided prior to the senior lender’s approval for the release of project surplus funds.

Inventory Bridge Financing

This financing solution is intended for developers holding completed inventory that they prefer to sell at a later stage, for example where prevailing market prices exceed those assumed in the project’s original feasibility report, or where the developer expects values in the project’s area to increase and seeks to maximize the project’s potential.

Through inventory bridge financing, Ruby Finance can provide financing upon project completion, once the remaining units are ready for occupancy and the construction financing framework has concluded.

Bridge Loans

Ruby Finance provides bridge loans to developers and purchase groups for a range of financing needs throughout the project lifecycle — from land acquisition, through the advancement of planning processes and the enhancement of existing real estate assets, to later stages of the project.

These loans are secured by a first-ranking mortgage over the relevant real estate rights.