Conditions precedent in real estate finance transactions and the mechanics of drawdown

Conditions precedent (CPs) are the pre-conditions that a lender requires to be satisfied prior to any draw taking place under a facility agreement. Many of the usual conditions precedent for a typical bilateral or syndicated facility agreement will also be applicable in the context of a real estate finance transaction, whether it be a land acquisition and/or development financing.

This guidance note outlines the additional conditions precedent which may apply in:

• • a real estate acquisition finance transaction (where the facility is required to fund the purchase of a single property or multiple properties); and
• • a real estate construction facility (where the facility is required to refurbish an existing building, or construct a new building, to be used for commercial, retail, industrial or residential purposes or for a combination of one or more of those purposes).

See Conditions precedent in real estate finance transactions and the mechanics of drawdown.