Developers will benefit significantly from RELA Prepay, a tool enabling them to support one of their most important stakeholders – landowners.
According to the RELA, landowners across Australia are already using Prepay, which brings forward the value of long-term lease income as a single upfront payment.
“For many families, it is becoming a straightforward way to unlock capital without parting with land that has often been held for generations,” RELA said.
“Prepay is now a regular part of renewable energy discussions for landowners.”
The product is designed to provide landowners with choice. It allows them to access the net present value of a renewable energy lease and use the capital when it matters most, whether that’s for debt reduction, business growth, diversification or succession planning.
“For developers, RELA Prepay doesn’t change the lease, but it’s increasingly important to understand as landowners bring it to the table,” RELA said.
Why this matters for developers
Although RELA Prepay is designed for landowners, developers still have a role to play in facilitating the prepayment.
“When landowners feel supported and confident in their decisions, the entire project and broader market benefits,” RELA said.
More than a dozen project-finance banks have already reviewed and approved transactions involving Prepay, which RELA said is evidence “the structure is well understood by the institutions that ultimately fund construction”.
“Helping landowners who wish to access Prepay doesn’t cost developers anything,” RELA said. “It’s a neutral tool from a developer’s perspective, but one that contributes to confidence and alignment on the landowner side.”
When it comes to what’s happening on the ground, RELA has found that many landowners are now raising Prepay in conversations.
“Some have seen it work for neighbours, others have specific goals for the capital, such as reducing debt, business growth, diversification and estate planning,” the company said. “Developers working with RELA are increasingly familiar with the product. Many have seen how supporting a landowner through the Prepay process helps build trust and supports strong partnerships.”
RELA General Counsel Jess Salvato said it is “not about selling Prepay to developers”.
“It’s about developers recognising that this is now part of the conversation, and being prepared to support landowners when it comes up,” she said.
For more information visit rela.com.au/rela-prepay