Project Finance for Global Mall and Shopping Centers

Understanding global mall and shopping center is usually used to refer to various types of facilities, differing in area and location, in which trade, service and entertainment activities are carried out. Large shopping centers, which are complexes of several tens or hundreds of retail outlets, are of interest to companies associated with the commercial real estate market. Project finance for malls and shopping centers remain capital-intensive requiring a systematic approach to financing.

Havelet Finance Limited provide and assist entrepreneurs to access quick and collateral-free funding solutions for their projects and businesses of all sizes. We are a one-of-a-kind technology business incubator. Our relationships allow for funding starting at US$10M and US$2 BILLION. We are ready to offer your business customized solutions in the field of financing commercial real estate projects, including funding the construction of shopping centers and supermarkets.

Principles and investment for project finance for Malls and Shopping centers.

Over the years, the concept of a shopping center has evolved according to the needs and demands of consumers in each country. Being able to walk through a space looking for a product and get it while enjoying being in a place makes shopping a psychologically satisfying experience.

Underneath are the principles for the success of malls and shopping center:

• Location and accessibility.
• Adequate supply of goods and services.
• Correct analysis of the environment.
• The optimal size of commercial premises.
• Following innovations and trends.
• Creating a pleasant and profitable space.
• Identification of the product with the business.
• Correct financial assessment of the project.
• Customer oriented business plan.
• Vision of the future.

It is obvious that technological progress and the emergence of new methods of attracting customers, along with the rapid growth of service standards, are steadily increasing the overall cost of building shopping centers and require more sophisticated models of financing commercial projects.

Advantages of Financing a shopping centers

Given the high cost of building modern shopping malls, project proponents must ensure sustainable access to a variety of funding sources. These may be equity capital formed by the company, but in practice, debt funds are considered to be the main sources of financing, which are attracted mainly in the form of long-term loans. Funding sources are strategic tools that help ensure the financial sustainability of the company (project), expand the abilities to plan and generate the necessary cash flows.

Broadly speaking, shopping center funding sources fall into two broad categories, as listed below.

Short Term Funding Source: The so-called short-term funding sources consist of all liabilities that are scheduled to be repaid within a period of less than 1 year, which are used to finance temporary needs. These funding sources can be internal and external, intertwined with public and private institutions that provide economic resources. Internal funding can be obtained from reinvested profits, which means that the partners will not distribute dividends, and these funds will be invested in the development of the project. External financing is provided through the sale of assets, depreciation, short-term lending and issuance of securities to cover current financial needs.

Long-term funding sources: Long-term sources of funding also include retained earnings, operating and finance leases, allowing shopping center operators to finance various operations depending on the long-term needs of a particular project.

Project finance for the construction of shopping Malls

Financing a shopping malls project, it is often important that capital is available quickly so that the project can be launched efficiently. project finance (PF) opens up wide opportunities for raising funds against future cash flows and project assets, regardless of the creditworthiness of its initiators.

In addition, classic bank loans also serve to ensure fast and efficient financing of large projects. However, the project implementation time largely depends on the creditworthiness of the loan applicant and whether he can provide all the necessary documents in full and on time.

The project participants establish a legally independent company that raises capital for the construction of a shopping center and is liable for all project debts with its assets. This is the so-called Special Purpose Vehicle (SPV). An important point in project finance is the forecast of project cash flows, which requires comprehensive research. In the case of PF, lenders pay more attention to the funded project than to its proponents. When it comes to project finance, the creditworthiness of an SPV is related to the future prospects of a particular business idea. PF can be flexibly combined with different financial instruments, so a mixture of classic debt financing from credit institutions and modern alternatives is often used.

We offer a wide range of services for business and Project finance for the construction of global malls and shopping centers.

• Project finance services
• Financial modeling and consulting.
• Loan guarantees and much more.

We support the financing of large projects develop advanced financial models for our clients and offer professional advisory services.

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