Pre-Sales Underwriting

Pre-Sales Underwriting may be achieved in two ways:

• where the project financier’s exposure is completely covered by actual, enforceable pre-sales by way of the exchange of non-mutually renounceable contracts or put-call option contracts arranged for a fee and at a discount to valuation. This allows the project funding to go ahead and the developer the opportunity to re-sell the units at market price closer to project completion and renouncing / rescinding the prior contracts.
• via an underwriting instrument available through specialist underwriters, underwriting the pre-selling of a project and thereby, the project financier’s loan repayment on project completion.