Almost without exception, property developers plagued by
bankruptcy prospects find themselves at the end of their ropes in
terms of liquidity. Considering the day-and-night difference in the
market value of a property, the costs of and difficulties in its
disposal, before and after project completion, as well as the need
to maintain social stability, developers are under considerable
pressure to acquire funding to continue and complete construction.
Such financing needs may be provided by either investors eyeing a
healthy return or urban investment companies on a mission of social
governance, but both must tread carefully to keep funding risks
under control.
COMMUNITY LIABILITY FINANCING