Budowa apartamentowca
As much as PLN 35 million
37 apartments
Built in the premium standard with sizes that ranges from 42 do 83 m2.
About the project.
The apartment building with a modern, steel and glass block is situated in the very center of Łódź, less than 300 meters from the most representative Piotrkowska Street. There are 37 unique apartments in the building, ranging in size from 42 to 83 m2, with large terraces. The residents also have at their disposal spacious, two-level interiors. Their area ranges from 75 to 125 m2.
The cost of building of the property was PLN 35 million. Our task was to obtain financing at the level of 70% of the total investment budget. The repayment of the bank loan in the amount of PLN 24.5 million was covered</span with an escrow account with funds from buyers of residential premises.
The scope of the assignment.
The investor’s expectations included obtaining financing for the construction of an apartment building located in the center of Łódź, based on the documentation prepared by the developer.
We managed the complete chain of the credit process, from the initial presentation of the project to obtaining a positive credit decision with favorable terms and conditions. We needed to update the cash flows and the construction schedule in order to meet bank’s criteria. At the same time, we were managed by the investor to cooperate with the bank’s credit analysts, providing them with all information in order to provide the final financing structure and positive credit decision. Finally, we also conducted the process of selecting a technical advisor and negotiated the optimal terms of a tripartite cooperation agreement between the investor, the bank and the project monitor.
Project challenges.
The main challenges that we encountered in the project implementation process were primarily related to the ownership structure and legal aspects of the investment. We were also obliged to verify the budget and model assumptions with regards to CF and the construction schedule.
We conducted advanced analyzes and then introduced all the necessary modifications to the previously developed model so that they were consistent with the financing structure that evergrow. proposed. We guided the project through the process of preparing the preliminary Project Monitor report followed by the repair schedule. We also participated in the negotiation of development and preliminary agreements with buyers of premises, which required the organization of effective cooperation with a notary, lawyers, investor and financing bank.
On the basis of a separate agreement, evergrow. also supports the investor in servicing the loan, taking over all obligations under the loan agreement – from the moment of signing the agreement to the date of full repayment of the debt.
