REAL ESTATE CONSTRUCTION FINANCE

We offer clients an extensive range of real estate finance products and services including (Project Finance, Structured Finance, Site and Services Scheme, Risk Sharing /Joint Venture Schemes)

1. Project Finance
We offer financial intermediation on real estate projects tailored to the specific requirements of the customer. This is usually for a period of 12-18months and is based on the projected cash flow of the project against the customer’s balance sheet. The proceeds of the project is expected to repay the financing of the project while the project assets is expected to secure the finance.

In other to ensure timely completion and repayment of the project finance, AHM would monitor the disbursement of the finance based on the work flow. Our in house project team has a cumulative experience of 10 years in Project Financing in locations in Lagos.

2. Structured Finance
Complex Real estate projects usually require unique financing needs. These financing needs usually don't match conventional financial products such as loans. This is where we come in with expertise in structured finance to provide solutions to the complex financial transactions. Every project requiring such would be considered on its own merit and the appropriate structure such as mezzanine financing, credit enhancement and tranching. To achieve the benefits of structured financing, each option is suited to the project to optimize the return.

3. Site and Services Scheme
The concept of site and services scheme is rapidly expanding in the real estate market. Its unique proposition is the economies of scale enjoyed by the beneficiaries on services such as electricity, maintenance, recreation etc. The positive aspect of sites-and-services schemes that deserves support is its recognition of the ability of people to house themselves, with a little backing from the government agencies. On the part of the beneficiaries, it makes best use of existing/potential resources, both at the household level as well as the community level. We would finance and partner with developers of such schemes as there is an improvement in the land which has brought about added value of the real estate.

4. Risk Sharing/ Joint Ventures
Our service offering in this mode of financing is to give the project that extra presence in the market, especially for developers with little exposure in the market. We would analyse and appraise the project and ensure it scales through all criteria before endorsing same. The risk in such project would depend on the financial and operational contribution f each investor. Also the expertise of each would be considered in bring out intermediation in such projects. Typical projects could arise from estates to commercial offices and shopping complexes.