14.12.2017
Project financing
in civil engineering
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Today the use of project financing tools is the most demanded in commercial real estate. This is due to the lack of equity participation in the project.

Proceeding from it, all projects are implemented either on own, or on borrowed funds. Unfortunately, today banks offer high percent of the credits and short terms of loan granting (up to 10 years). This fact doesn't allow to implement financial project strategy successful and to show high indicators of profitability. It is caused by high expenses on start and also the preparation period of the commercial project when tenants move on to leased property, repair it and have rent vacation. Banks also assume that loans to commercial projects are connected with high risks, consequently, they demanda bail or other mean of guaranteeing the fulfillment of obligation for the borrowed funds.

In the case of project financing all above-stated minuses of common bank credit are brought to nothing. Moreover, the state participates in realization of the investment project apart from the initiator of the project and the bank/ It provides additional administrative resources because all parties are interested in successful project implementation.

The first administrative-business centers are already engaged in construction in Moscow suburbs due to project financing. Sberbank acts as credit organization. This tendency gains popularity and the amount of bids for project financing of commercial objects all over Russia is more than 1000.