Real estate debt
Financing for stalled construction projects (WIP)
We structure the construction finance to complete a stalled development.
Situations we work with
Developers with works halted by lack of funding, cost overruns or the exit of the contractor. Investors or developers buying an ongoing development that need to finance the acquisition and the completion. A matured development loan, or works and sales deviations, that needs refinancing.
What we analyse
The real state of the works and the cost to complete them, licences and timelines, the contractor agreement, pre-sales and buyer deposits already paid, existing debt and charges, and the final value of the development (GDV).
Frequently asked questions
Can a development halted for months be financed?
In many cases, yes. The lender will require an updated budget to complete it, the status of the licence and a solvent contractor. Funds specialised in special situations review these transactions on a regular basis.
What happens with buyers who have already paid deposits?
It is one of the first points the financier reviews, because it affects the structure and the guarantees. How those deposits are secured must be documented.
Can an ongoing development be bought with financing?
Yes. A loan is structured that finances the acquisition and the pending works, with drawdowns against construction certificates.
Contact
Tell us about your transaction
We review your case confidentially and reply within 48 hours at the latest.