fbpx
ContactCenter@radabank.com.ua
ContactCenter@radabank.com.ua

Construction financing fund

Real estate investments

RADABANK offers to real estate developers a transparent and proven mechanism for financing the facilities construction - through the Construction Financing Fund (CFF).

Cooperation with RADABANK will enable the developer to receive financial support from the Bank and at the initial stage of construction and will ensure the investors flow in by providing them, as CFF principals, with additional guarantees: controlling the targeted use of funds and obtaining investment objects ownership.

English Text

How it works?

  1. Trustee and real estate Developer conclude agreements package on the opening of the CFF.
  2. Investors conclude agreements with the Trustee to take part in the CFF.
  3. Investors transfer funds to the CFF .
  4. In turn, Trustee transfers funds from the CFF to the estate Developer to finance the construction.
  5. Estate Developer carries out construction, sets it into operation..
  6. Trustee controls the targeted use of Investor’s funds.
  7. Estate Developer vest property ownership documents to Investors..

Advantages

and benefits of working under the CFF scheme:
  • 100% legality of financing in compliance with the requirements of the current legislation (the Law of Ukraine “On investment activity” and the Law of Ukraine “On financial and credit mechanisms and property management in housing construction and real estate transactions”);
  • Regarding other financing mechanisms for new buildings this one is the easiest and the most understandable for the Investor. After reviewing the agreement on participation in the CFF and the Rules of the CFF, the Investor will understand where he invests funds, what and when he will get in return, what his rights and risks are;
  • The most reliable way to buy an apartment, which guarantees the protection of the Investor (Principal) at the legislative level;
  • Possibility for the Investor to pay the apartment cost according to the schedule agreed with the Trustee.

Protection of the estate developer and investor from legal risks

In part 3 of article 4 of the Law of Ukraine “On investment activity” it is stated that the implementation of housing construction projects, financing of which is carried out using non-state funds attracted from individuals and legal entities, can be carried out exclusively through: construction financing funds (CFF), real estate operations funds (REOF), joint investment institutions (JII), non-state pension funds, as well as through the interest-free (target) bonds issuance.

Thus, the CFF is the only one of the low-cost mechanisms to protect the estate developer and the investor from legal risks: invalidation of equity agreements in construction and contracts for the sale of property rights to real estate.

Leave a request for consulting

In any convenient way

Call to

Contact center*

0 800 500 999

Or fill in the feedback form