Development finance due diligence

If a transaction involves the financing of the development (or construction) of a property, a lender will need to conduct additional due diligence on the following:

• • the building contract and any other development documentation;
• • consultants’ reports in relation to geotechnical, environmental, financial, legal, engineering, survey, insurance, valuation and any other matters associated with the development; and
• • the financial model (prepared by the borrower or sponsor) detailing all construction, development and financing costs and the expected market or other returns following completion of the development.

This guidance note provides detail in relation to each of the above.

See Development finance due diligence.