Background to Financing Plan Requirements
Article 20 of Law 27 of 2017 – Real Estate Sector Regulation (“the Law”) requires a Developer to submit with a Development License application “the main particulars related to the methods of financing the off-plan sale project”.
This guideline document sets out the requirements for submitting the Financing Plan.
The Financing Plan will comprise of a number of documents:
- Completed Finance Plan Template in the form prescribed by RERA.
- Market Research to support the Sales Plan assumptions.
- Percentage of units to be sold Off-Plan before the Development will commence.
- Details of any Loan Financing including, committed Loans and uncommitted loans.
- Supporting letters from Financing Banks confirming loans.
- Details of the Equity Investment (Developer own Funds) to be invested into the project.
- Guarantee Letter from the Developer that the Equity Funds will be invested in the Project.
- Certification of the Financing Plan by the Development Company’s Auditors
In the attached documents you can find the Financing Plan Development Guidelines and an excel template to help you developing it.