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Corporate Realty Finance
Corporate & Realty Finance (CRF) offers financial assistance to Developers and Builders in the Residential, Commercial and IT sectors. CRF is present in over 40 locations pan India comprising all metros and few of the non-metros. We share a healthy relationship with over 200 Developers across the country. The focus is primarily on financing Residential projects which gives fillip to retail mortgages business.
Why ICICI Home Finance
Extensive experience of ICICI group in Project Financing & Corporate Lending
Understanding market dynamics and project viability
Faster decision making capability
Ability to underwrite large exposures (subject to regulatory norms on exposure)
Product offerings:
Construction Finance (CF)
Construction Finance cum Lease Rental Discounting
(CF cum LRD)
Lease Rental Discounting (LRD)
Construction Finance
Construction finance helps to finance the developers/ builders for the project acquisition and construction cost. The major project related parameters are:
Marketability / Sale Price - A preliminary study is carried out by ICICI HFC in order to assess the demand and saleability of the project. A comparison is carried out with the projects in the vicinity of the project being assisted.
Technical aspects including valuation - ICICI HFC carries out technical feasibility through in-house and external empanelled valuers. Such study is carried out in order to determine project cost, saleable area, status of various approvals etc.
Tenure - The tenure of the credit facility is fixed based on the project requirement and the availability of the cash flows.
Pricing – All loans are floating rates linked to ICICI HFC Prime Lending Rate with a monthly reset. The pricing is dependent upon the credit risk of transaction.
Promoter's Contribution - This contribution can be in the form of equity and/or land. In the case of residential projects due weightage is given to units already sold /committed receivables.
Approvals - ICICI HFC disburses facilities only after the Developer has obtained all the requisite project approvals from respective regulatory bodies from time to time.
Monitoring Mechanism – ICICI HFC obtains end use certificates, progress reports and carries out financial audits and inspections periodically during tenure of loan.
Construction Finance cum Lease Rental Discounting
("CF cum LRD")
CF cum LRD loans are offered to developers who are constructing commercial property and the same is to be leased out on completion. Amount of loans is determined by discounted value of future rent cash flows. Loan is disbursed linked to progress of project and amortization starts post completion.
Lease Rental Discounting ("LRD")
CRF also undertakes LRD proposals for completed projects of large quantum.
CF cum LRD & LRD proposals would have a floating rate pricing linked ICICI HFC Prime Lending Rate with a monthly reset. ICICI HFC would offer differential pricing during construction period and after project completion or lease tie up. The typical tenure of these loans are 6 to 9 year depending on Developer, Project and lease tie up arrangement.