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Developer financing
Developer financing is meant for:
- client who is an entrepreneur (legal entity or natural person) and who
- is authorised to carry out business in the Czech Republic and in fact he carries out business there
- has a tax duty in the Czech Republic
- can be a credit recipient according to relevant legislation
- municipalities, confederations of municipalities, regions, allowance organisations established by municipality or region, and legal entities established by municipality or region
Description of Developer financing:
Developer Financing is a product for financing developer projects, i.e. business plans for building or purchasing real estate for the purpose of its lease or sale.
The developer project must comply with the following criteria:
- the purchased real estate must undergo subsequent modernization or reconstruction
- all income generated by the developer project comes from leasing or selling the real estate
Basic types of developer projects:
- development of business parks or logistical facilities
- development of retail, hotel or office buildings and complexes
- development of apartment houses or family houses or their complexes
- development of multipurpose complexes
General division of developer projects according to their use:
- Commercial - commercial spaces prevail (business parks, logistical facilities, retail, hotel and office complexes, multipurpose complexes).
- Residential - residential spaces prevail (apartment houses, family houses, multipurpose complexes).
Developer projects can be financed with mortgage loans or investment loans. Komerční banka also offers a combination of a "large-scale" investment loan and "small-scale" civilian financing, namely for developer projects aimed at building apartment houses or multipurpose complexes.
Developers can also use our "Current Account for Developer Financing," which provides control over earnings and expenses exclusively associated with developer projects. Control over these financial operations provides guarantee for the future owners of the real estate (apartments).
Benefits of Developer Financing:
- possibility of implementing financially demanding investments for developing business activities
- security via the object of the financing
- possibility of opening a special current account for developers
Developer financing will allow you to:
Finance large-scale investment plans
Thanks to the option of choosing between investment and mortgage loan, you will obtain sufficient resources for financing your projects.
Finance the construction or reconstruction of buildings for their further business use
Developer financing is designed for financing the construction or reconstruction of real estate to be either sold or leased.
Finance real estate in combination with mortgage loans of your customers
The so-called combination of large and small-scale financing, where the bank provides loan not only for the duration of the construction, but also provides loans to the parties interested in purchasing the units in building under construction. Part of the principal of the "large-scale" construction loan is repaid by taking "small-scale" loans, generally standard personal mortgage loans, by clients purchasing the apartments in the new building.
How to apply for Developer Financing:
Supplement your application with current trade certificate, financial statements and documents for securing the loan, business intention focused on cost and revenues and advantages and disadvantages of project locality and specimen of purchase/lease contract.
