and Access to Credit
Bank financing of real estate projects is a very complex and important tool in the industry. In other markets, there is extensive experience and in Argentina it is expected to grow hugely at a fast pace. Right now, developers are learning about this modality after decades of having financed projects without banks, which, in turn, are assembling their real estate departments and training their Risk and Commercial areas to be able to operate in a market they still do not fully know.
The option that developers have of funding with sales collecting the full price during construction is beginning to be discontinued. As in the whole world, little by little, buyers will get used to paying a lower percentage of the price during the work and this will end up making the whole system start operating under normal parameters, that is to say with banks.
For developers, it will mean a huge change. The first and most relevant change will be to assume that instead of having an atomized portfolio of unsecured meter creditors, as in trusts at cost (which do not even have a closed price), they will now have to interact with professional real estate departments, which will evaluate the projects and the well-assessed profitability, with all taxes paid.
They will accept some, reject others, control the process and demand guarantees that they will only be released when the debtor has complied.
Trend Real Estate will carry out this professional project evaluation and analysis management, the presentation to the Financial Institutions for their funding, at the beginning and during the work progress and financing to the final client.
Welcome the professionalization and standardization of the industry.