Development Recovery Strategies

Home Brokers initial successes in 2008 in helping buyers renegotiate their purchase contracts with developers has lead to the launch of a new service for Property Developers many of whom have been asking for assistance in closing contracted sales in underperforming developments. 

Who is the service suitable for? 
 
Primarily for developers with a large number of contracted yet uncompleted sales, who are struggling to maximize the conversion of the contracts due to purchasers being unable or unwilling to complete. 
 
What does the service entail? 
 
1.       We will take over the day to day management of the conversion of contracted purchasers, proactively contacting                 purchasers and or their solicitors to get them engaged in dialogue.

2.       We categorise the purchasers enabling the developer and their banker to have a clear line of sight on the likely outcome of the         contracts.

3.       We implementing various solutions to enable the contracts to proceed, which includes underwriting the purchasers financial         position, enabling the developer to make informed decisions regarding price reductions, deferrals on completions,                 rescissions and repudiations.

4.       We coordinate a weekly status update for the developer, their legal team, their bank and sales agent (where appropriate).

5.       We work with the developer to identify the most viable financial model for managing any residual commercial finance,                   including identifying which (if any) units are to be re launched and resold at reduction versus the interest costs being serviced by long term rentals.

6.       Where appropriate, we source investors for multi unit purchases, which includes foreign investors, private pension fund         investment and social housing leaseback opportunities.

7.       We can coordinate the fit out and letting of units for rental.

8.       We will proactively manage the PR relating to the development (we have found this to be a critical factor when managing conversions) 
 
What is the desired outcome? 
 
1.       Release the developers internal resources which may be tied up in the administration of contract negotiations.

2.       Maximise sale prices by implementing a diligent underwriting process to the assessment of purchasers financial positions         (in a recently completed project we achieved completion prices of up to 25% higher than the estate agent recommended to the developers bank).

3.       Maximize the speed and conversion of contracted purchases by coordinating new buyer sourcing whilst existing                 negotiations are ongoing.

4.       Provide the developers banker with the confidence that a professional experienced consultant has been retained to                 proactively manage the recovery of the development. This in turn enables the developer to focus on the acquisition and delivery of new income streams confident in the knowledge that existing developments are in hand. 

 
The service can be tailored to the specific needs of a particular development, including the creation of white label completions departments for larger developments.