$12.6M residual stock on a Mosman trophy asset

The situation

A residual stock requirement against a trophy residential asset at 3 Methuen Avenue, Mosman, New South Wales — appraised by Savills at $18,000,000. The client needed an eight-figure facility to hold completed stock rather than discount it into a soft market.

The problem

Two things make a deal like this hard. The first is scale: eight-figure residual stock facilities sit outside what most brokers place, and outside what most non-bank lenders will write without a long relationship. The second is price. At this size, the difference between an opening rate and a negotiated one is measured in hundreds of thousands of dollars over the life of the facility — and most brokers accept the first number they are given.

What we did

We placed the facility at $12,600,000 against the $18M appraisal, an LVR of roughly 70%, and then treated the pricing as a negotiation rather than a quote. The case was argued directly with the lender's client-partnerships and credit teams, moving through 9.00% and 8.24% before settling at 7.99% — supported by the quality of the security, the strength of the borrower's conduct across other facilities, and the relationship weight that comes with Preferred Platinum accreditation.

The result

A $12.6M facility at 7.99%, more than a full percentage point below where the conversation started. On a facility of this size, that margin is the single largest lever available to the borrower.

Why it matters

This deal demonstrates capability at the top end: eight-figure facilities, national coverage from a Victorian base, and pricing negotiated rather than accepted. The rate you are first offered is rarely the rate the lender will settle at — but only if someone makes the case.

Related reading

• residual stock finance for a developer exit
• how residual stock loans work
• equity release against completed development stock
• residual stock decision tool