Not all lenders will offer finance for airspace development, however more lenders are starting to as they begin to understand the benefits of airspace development in this growing trend. Airspace development requires niche funding and every lender has a different appetite. We are however seeing more lenders entering the market as confidence grows with increased activity levels. Engaging with a connected broker at an early stage is key.
- The primary concern for a lender is the ability to secure a tangible asset. The availability of suitable security is a pre-requisite for any funding. A common trend is for the lender to take security over an airspace lease (amongst other security). The viability of a development from a lender's perspective is determined by both legal and commercial factors which are unique to each transaction. Not all airspace developments will be fundable.
- A successful track record of experience with airspace development means a lender is much more likely to consider funding. Therefore, if you do not have this experience yourself you may wish to consider entering in to Joint Venture Arrangement with a suitably qualified party/developer.
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