Comprehensive Financing Solutions for Development Projects

Management of financing, guarantees and project oversight through a single financing partner – Ruby Finance, the Group’s lending arm.

Complex real estate development projects typically rely on a combination of financing components that need to work together in a coordinated manner throughout the life of the project. Ruby Finance brings together a range of financing solutions for developers under one comprehensive framework, including equity completion financing, senior debt as part of the construction financing framework, landowner financing in combination transactions, performance guarantees, Sale Law insurance policies, and other complementary solutions. Bringing these financing components together under one framework enables a comprehensive view of the project’s needs and the development of a tailored financing solution that supports the transaction throughout every stage.

What’s Included

Senior debt: The senior credit facility typically forms the primary financing layer of the project and is structured according to the characteristics of the transaction, the project’s overall costs, and its financing requirements.

Equity Completion Financing: Equity completion financing enables developers to meet the project’s equity requirement while making more efficient use of their available capital and allocating it across multiple projects. In most cases, the financing is provided through a loan subordinated to the senior debt, with the security structure, loan terms and repayment date determined according to the characteristics of the transaction and the overall financing framework.

Landowner loans for combination deals: In combination transactions, the timing of the consideration received by landowners does not always align with the financial needs that arise throughout the life of the transaction. Tax payments, inheritance distributions, the settlement of existing obligations or other business needs may require a financing solution before the units or other consideration from the project are received. Private landowners, heirs or companies holding historically owned land may therefore require financing at an earlier stage. Ruby Finance provides dedicated financing to landowners as part of the project’s financing framework, subject to underwriting and tailored to the transaction structure and expected timing of the consideration.

Sales policies: These policies secure buyers’ payments in accordance with the provisions of Israeli Sale Law. The policies are issued by insurance companies working in ongoing cooperation with Ruby Finance.

All Financing Solutions Under One Framework: When construction financing, landowner financing, Sale Law insurance policies and additional financing solutions are brought together under one framework and coordinated with the relevant insurance providers, the different processes can operate in a more synchronized manner. Approval timelines are coordinated between the relevant parties, financial analysis is conducted based on a comprehensive view of the project, and the various financing components are aligned from an early stage. In projects involving multiple parties and complex timelines, this represents a significant advantage.

In addition, the in-depth familiarity with the project developed throughout the financing period enables efficient assessment of changes and challenges that may arise along the way. This understanding supports the adaptation of financing solutions and informed decision-making in accordance with the needs of both the project and the developer.