PROJECT FUNDING

Property Development Funding, Outline Requirements & Standard Criteria

The following information has been supplied to us by UK brokers as an aid to funding suitable projects in Russia. We find that it is necessary to advise and help our clients to submit comprehensive proposals that are correctly prepared and conform to the requirements of the lenders. In particular to ensure that the initial single page overview contains relevant information that illustrates the viability of the project.

At present, we have four Investment Funds at our disposal.

Three of our Funds offer various terms, 75% funding can be provided with your contribution being the outstanding amount of 25% or over. Alternatively up to 100% funding can be provided with Equity.

Participation in the project. Current interest rates vary up to 3.50% above base rates, and are dependent on various parameters including country, with terms from 3 to 15 years – and a minimum investment requirement from our lenders is € 5m (euros).

Our fourth Fund lends to 70% L.T.V. with 30% input from the clients being required. The security of 30% can be cash input, land or any additional asset based security, or alternatively, a 40% Bank Guarantee. With this in place 100% funding is available. Current interest rates vary up to 3% above base rates with a €10 million (euros) minimum investment project value.

All funding can be provided in USD or euros. Other currencies, including sterling may be considered.

In terms of standard criteria, there are a number of things to consider, agree to or do:
1. In the first instance, create a single page overview of your project and include location, country, development(s), funding requirements, planning permission status, timescales etc.

2. On our funder's acceptance of the above you will then complete a 3 page application form.

3 You will also need to complete and sign a non-circumvention agreement that states that you will not go direct to the lender, but always through us, for a period of 5 years. The lenders will also sign a non disclosure agreement to safeguard any of your information which you may consider to be sensitive.

4. In addition, you would need to provide a business plan, of which we can provide a template. It requires quite a lot of information, however most of it can be reused for future funding.

5. You will also need to provide a full project build timescale and cash flow forecast with the
above as well as submitting copies of the site and build plans, planning permission etc.

6. On receipt of all documents, the project will be fully considered and an offer in principle will be given to you with an indicative interest rate.

7.You will then be asked for an amount of money to cover the extensive due diligence process, which the lender will undertake, refundable on your acceptance of the subsequent formal offer. These funds will be deposited at the lenders head office At this stage an independent investigator would visit Moscow to carry out the due diligence.

8. Once the formal offer has been provided and accepted, the amount of loan requested, less 5% for fees, can be drawn down according to the agreed schedule.

We hope that this helps to give you an indication of the whole process. If you are interested further, please contact us and request the additional documents mentioned above, which will be sent by email".

For further information on this subject, please use our feedback form to contact us
or call 007-095-3037801