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Forward Funding Agreement
"I need a Forward Funding Agreement for a sustainable retail development project in Auckland, where an overseas institutional investor will provide NZD 50 million in funding, with completion scheduled for March 2025 and specific green building certification requirements."
1. Parties: Identification of the Funder and Developer/Seller, including registered addresses and company details
2. Background: Context of the agreement, including property details and development overview
3. Definitions and Interpretation: Key terms used throughout the agreement and interpretation rules
4. Conditions Precedent: Prerequisites that must be satisfied before the agreement becomes fully effective
5. Project Description: Detailed description of the development project and specifications
6. Funding Obligations: Funder's obligations regarding the provision of funding, including timing and conditions
7. Development Obligations: Developer's obligations regarding the construction and completion of the project
8. Payment Mechanics: Process for drawdown requests, payments, and funding administration
9. Construction Requirements: Specific requirements for construction, including timelines and quality standards
10. Warranties and Representations: Standard and specific warranties from both parties
11. Monitoring and Reporting: Requirements for project monitoring and regular reporting to the Funder
12. Security: Security arrangements protecting the Funder's interests
13. Insurance: Required insurance coverage for the project and parties
14. Default and Remedies: Events of default and corresponding remedies
15. Completion and Handover: Requirements and process for practical completion and final handover
16. Dispute Resolution: Procedures for resolving disputes between parties
17. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law
1. Third Party Rights: Required when other parties have specific rights under the agreement, such as tenants or contractors
2. Cost Overrun Provisions: Detailed provisions for handling cost overruns, including additional funding arrangements
3. Pre-lets and Sales Requirements: Include when the funding is conditional on achieving certain pre-let or pre-sale targets
4. Step-in Rights: Provisions allowing the Funder to take control of the development in specific circumstances
5. Development Manager Provisions: Required when a separate development manager is involved in the project
6. Mezzanine Funding: Include when there is additional mezzanine financing involved
7. Green Building Requirements: Specific provisions for environmental standards and certifications if required
8. Cultural Heritage Provisions: Required when the development affects sites of cultural significance to M膩ori
1. Property Description: Detailed legal description of the development site
2. Development Program: Detailed construction program including milestones and completion dates
3. Drawdown Procedures: Detailed procedures and requirements for funding drawdowns
4. Form of Drawdown Notice: Template for drawdown requests
5. Development Budget: Detailed project budget including cost breakdowns
6. Construction Specifications: Technical specifications for the development
7. Form of Practical Completion Certificate: Template for completion certification
8. Required Insurances: Detailed list of required insurance policies and coverage
9. Form of Direct Agreement: Template agreements with key contractors
10. Security Documents: Forms of security documents required under the agreement
11. Professional Team Appointments: Details of key consultants and contractors
12. Reporting Requirements: Templates and requirements for project reporting
Authors
Real Estate
Commercial Property
Property Development
Construction
Infrastructure
Financial Services
Investment Management
Urban Development
Retail Development
Industrial Development
Commercial Banking
Property Investment
Legal
Finance
Real Estate
Development
Construction
Investment
Risk Management
Commercial
Property
Project Management
Asset Management
Treasury
Compliance
Real Estate Director
Development Manager
Investment Manager
Chief Financial Officer
Construction Manager
Project Manager
Legal Counsel
Finance Director
Property Director
Risk Manager
Commercial Director
Investment Analyst
Development Director
Fund Manager
Asset Manager
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