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VIDEO · 16 AUGUST 2018

Forward Funding Of Development Projects (Video)

Ropes & Gray LLP
Ropes & Gray LLP
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Iain Morpeth, head of Ropes & Gray's international real estate investments & transactions practice, discusses forward funding as a source of construction financing.

United StatesReal Estate and Construction
Iain Morpeth
Iain Morpeth
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Iain Morpeth, head of Ropes & Gray's international real estate investments & transactions practice, discusses forward funding as a source of construction financing.

Transcript:

Hi, my name is Iain Morpeth. I'm a partner in the real estate practice based in Ropes & Gray's London office. In this video, I'm going to talk about forward funding of development projects.

When construction finance is difficult to get from lenders, forward funding always seems to be re-discovered as a source of construction financing.

Conventional forward funding arrangements
You will be familiar with a conventional forward funding arrangement. Here a developer, who owns a development site, enters into a bilateral agreement with an investor under which it transfers title to the property and agrees to procure the construction and letting of the project. The investor will reimburse all of the development cost and pay a profit share when the project has been practically

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