Context
The client, an experienced real estate agent who had completed several large-scale sales of residential buildings intended for renovation, approached us to obtain financing for his own development project. Having found an interesting residential building worth CZK 130 million, he wanted to secure the remainder of the purchase price and renovation funds, having already contributed some of his own funds.
Task
- Find and contact the appropriate banking and non-banking institutions.
- Negotiate the most favorable financing terms.
- Prepare the project and provide the necessary documents for bank approval.
- Provide the client with legal and administrative support throughout the process.
- Solve the bank's key problem: the client has no experience of development projects.
Legal and financial processes
- We prepared complete project documentation and materials for reviewing the plan.
- We negotiated several offers from banks and non-bank institutions.
- We explained the context of the client's previous experience and knowledge of the real estate market to the bank.
- Together with lawyers, we ensured that the entire process ran smoothly — from the initial offers to the binding loan agreement.
- We coordinated the administrative and legal services, as well as the loan utilization process.
Key point
The biggest challenge was convincing the bank that, despite having no history of development projects, the client had sufficient real estate experience and was capable of successfully implementing the project. Thanks to thorough preparation and patient negotiations, we gained the bank’s trust.
Result
- The client received a binding offer for bank financing totaling CZK 100 million to cover the purchase, renovation and subsequent sale of the apartments.
- The residential building has been successfully purchased and is currently being renovated.
- Due to the success of this project, the bank subsequently approved an even larger credit line for the client, enabling him to purchase and prepare two more development projects in Prague.
‘Without professional help, I would never have obtained such favorable terms. Not only did we successfully purchase the first building, but we were also able to launch other projects, which I would not have been able to do without the bank’s support and financing negotiations.”
Legal and consulting areas
- Banking and financial law
- Commercial law
- Real estate transactions and development projects
Keywords
#developmentfinancing #residentialbuilding #realestatemarket #bankloan #Prague
