Urban Regeneration;
Forward Funding
Forward Funding includes funds from large pension funds, high net worth individuals, Family Offices.
Forward Funding means that all the funding for site costs and build costs are available, with the added advantage that the Funder is usually also the purchaser of the finished units; ie a pre-arranged exit strategy.
Examples include the increasingly popular Build to Rent projects, whereby a pension fund or similar organisation wishes to acquire a project to hold for the long term, ie some fifty years or more While the fund will provide the land purchase and development costs, the Developer, by agreement, delivers the finished product.
This is not to be confused with “Off plan” sales, as the project is fully funded by the lender, whereas “Off plan” sales may indicate the developer is underfunded.
If you are interested in forward funding and would like to speak to a property development finance broker, please contact us at Catherine Spode and Associates.