Our service covers the requirements of property funders and investors with many years’ experience across all construction sectors
We have a proven track record of success in leading comprehensive reviews on property development transactions with values ranging from £350k up to £150 million. We provide funders with independent and impartial advice to facilitate the management of development risk and the protection of the funder’s interests. Our core skills include due diligence, development monitoring, financial management and lending advisory support.
We provide fund monitoring services to banks and development finance companies, funding institutions, institutional investors, tenants or purchasers, grant funders and insurance companies.
ALTERNATIVE FUNDING STRUCTURES
With the growing amount of capital under alternative and less traditional management, there are increasing opportunities for the use of Islamic, peer-to-peer and equity crowd-funding financing in backing projects. Armed with an appreciation of the relevant principles of the Shariah and the ability to address the concerns of less conventional lenders, borrowers and project sponsors our development monitoring service and comprehensive reporting commitment aims to identify risk and to assist in the decision-making process when the Investor is considering lending and investing in viable developments. Our unique approach has proved vital for ensuring stakeholders and financiers remain fully protected and to maintain their confidence in the property development sector.
The developments we are engaged on range from small conversion projects to high value, high profile and quite often complex transactions as a result of city centre locations and stakeholders often with connections to off-shore investor structures. This demands a thorough understanding of various types of traditional, peer-to-peer and Islamic financial structures.
The protection of a funder’s interests in a development that is not under its direct control requires a careful and controlled review process of the project information, the monitoring of construction activity on site and the completion of the necessary documentation and approvals. This commences with an initial report, continues with interim reports (normally monthly) and concludes with a completion report.
We provide fund monitoring services to the following types of clients:
- Banks and development finance companies.
- Funding institutions.
- Institutional investors.
- Tenants or purchasers.
- Grant funders.
- Insurance companies.
Mitigation of Risk
The key to successful fund monitoring is to complete a thorough and detailed review of the development and be proactive in identifying potential issues as early as possible in the process that could ultimately impact upon the overall delivery of the development.
Our appointment at the outset of a funder’s involvement in a development process provides a clear understanding of a Borrower’s proposals prior to the funding commitment being finalised.
The first stage of Fund Monitoring is to carry out a thorough review of the project and to confirm our conclusions in an Initial Report.
This report will address the key aspects of the development including:
- Land and property acquisition matters.
- Statutory consents including planning and Building Regulations.
- Details of the developer and project team.
- Financial appraisals.
- Development, finance and consultancy agreements.
- Construction documentation and contractual arrangements.
- Construction costs.
- Development and construction programmes.
- Design, specification and construction quality.
- Insurance arrangements including warranties and bonds.
- Cash flow.
- Health and Safety.
Ongoing monitoring of the development ensures that the funder’s interests are protected and any risks properly managed until they are discharged in full.
Once the funder approves the Funding Agreements and the construction process commences, we will undertake regular reviews of the financial and construction progress, carry out site visits, reviewing development and construction agreements, provide recommendations for facility drawdowns against the terms of the Funding Agreement together with forecasts of costs to complete the project, programme and documentation updates.
At Practical Completion, we will carry out a final review of the project addressing the close-out of all key issues.
We will provide a Completion Report including occupation issues, the delivery of the necessary documentation including certificates, relevant consents, discharge of all conditions, financial position, Health and Safety file and any other relevant operating and maintenance manuals, a schedule of defects and a list of any outstanding works.
Developer/Building Owner Benefits
The ongoing monitoring of the development, on behalf of a funder, acts as a secondary check that the Developer/Builder owner’s interests are protected and any risks properly discharged.
This is achieved by:
- Enhanced risk management.
- Enhanced management of financial, quality and programme constraints.
- Greater protection of the client's interests.
I would recommend Gateley Vinden to any organisation or individual looking for advice or assistance
Helena Partnerships - Development Manager (Programme Delivery)