The loan is used for a preparation period of a development project plus starting the first construction work.
The loan will be repaid by refinancing, from the sale of the collateral property, or from the incoming business revenues of the company.
The loan is secured with a first rank mortgage.
The borrower retains the opportunity to raise additional capital, if necessary, as the collateral value increases.
The mortgage was established during a prior financing process and will also cover additional stages of financing.
Prior to the next stage of financing, construction supervision must confirm the completed works (if construction has commenced and works have been performed in a considerable amount) and a third party must assess the market value of the collateral.
The LTV in 3 stage is 57.7% and can increase to 59.0% in further stages.
The development project is financed based on the value of construction invoices, which arise from construction supervision acts prepared on the basis of the work performed. Consequently, we consider the cost of construction work actually performed, in addition to the primary market value, to be the value of the collateral.