Finding your way through construction and development finance deals
The United Kingdom’s challenges in meeting demand for residential housing are well documented – but developers are extremely active and construction continues apace across all asset classes, including retail, office, mixed-use regeneration, logistics facilities, student accommodation and private rented sector. So, what most concerns, or should most concern, lenders when documenting development finance deals?
In this session, we will consider the following issues, with a focus on how lenders can mitigate construction risk:
- the impact of different procurement routes (for example design and build or construction management)
- the construction security package
- collateral warranties and third party rights
- drawdown mechanics
- approaches to milestones, budgets and cost overruns
- guarantees – cost overrun, finance costs, completion and financial
This seminar will be of interest to anyone involved with the real estate finance sector whether lender, borrower, sponsor or developer.