Building mortgage is a financing tool used to fund the real estate developers to construct or re-develop a new building (commercial, industrial or residential) for either sale or lease-out upon completion. It is usually a medium to long term loan, covering a certain percentage of the land price and construction costs during the whole construction period. As many PRC based enterprises are setting their footholds in local properties market, we have been seeing strong and constant demand of properties over past few years.
Using internal cash position appears as the fastest and most efficient way to fund their development; however, the property developers should seek long-term commitment from banks in order to sustain for long term growth and appropriate business leverage. Before knocking the doors of the bankers, the accounting or the finance professionals should have an idea as to what types of financing are available for property developers and what the lenders will consider before approving your property loan. This workshop provides valuable insights to CFOs, financial controllers or finance managers so as to increase the chance for a positive outcome.
Key topics covered:
Session 1 (5 May)
- Types of building mortgage available for commercial & residential properties
- What if the owners are being a Joint Venture
- The range of factors a credit approver will consider prior to approving an application
- Terms and conditions of your application: which could include how much a company wants to borrow and the usual conditions
Session 2 (12 May)
- Key documentations and procedures required for drawdown of loans
- Conditions precedent for subsequent drawdowns
- If there are costs-overrun on the constructions, what actions would the lenders normally take
- Other usual terms & conditions required by the lenders
Trainer profile:
Samson Lai with two masters’ degree (MA in Professional Accounting/Information Systems and MBA) and two professional qualifications (ACIS and ACIB/Certified Banker), Mr. Lai is a seasoned banker with over 25 years of solid banking experience, covering corporate lending, credit administration, front lines sales and marketing strategies. He has wide and extensive exposure on both credit & marketing for mid-cap enterprises, property developers, REITs funds, securities firms and SMEs in Hong Kong/Macau/Guangdong Province.
CPA PD
