The first quarter of this year was marked by positive news in the lending of construction companies. Two developer received loans, and a third company awaits final approval, says Economic News.

During the first three months of this year became aware of three major loans development companies. In January Ukrsotsbank allocated an additional credit of "South Beach" a $ 5.9 million for the completion of the construction of apartments class de luxe «Nikita Palace in Yalta. In March of OAO Oschadbank "continued funding TMM under existing lines of credit to complete construction of the first housing and office complex Sonyachna Gate.

Also in March Ukreksimbank tentatively approved an increase in credit line for KDD Group NV (Netherlands), the holding company "Kiev-Donbass", with 1.28 bln. up to 2 bln. to build an office center with a five-star hotel Sky Towers. We also consider the increase in the maturity of the credit line from 25 May 2012 to May 25, 2014 This rule KDD Group looks forward to signing the final agreement with the bank until the end of May this year.

High Availability

According to Evgenia Grebenyuk, a senior analyst with Troika Dialog Ukraine, in the case of TMM and KDD Group talking about increasing the already open credit lines. "This is exactly what characterizes the behavior of the banks - they gradually resume lending, but only known to them and trusted clients who have suffered a crisis, and only by completion of specific projects", - explained the «i», Mr. Grebenyuk.

Agrees with him BG Capital analyst Alexander Romanov: "Preference will be given to projects with planned rapid refund. This is a draft in the later stages of implementation, or small enterprise. But the decisive factor for granting the loan still is primarily the solvency of the borrower - the existence of a stable operating income sufficient to meet the obligations under the credit. This is evident from new loans.

Thus, at the date of the loan to complete the "Nikitskiy Palace" readiness of the first stage of the complex was 80%, has been fully completed installation of monolithic structures and floors, was completed glazing, was mounting utilities. And in complex Sonyachna Gate "at the time of approval of the loan in the first stage of the complex is 95% completed the device monolithic framework, roofing work carried out at 80%, brick exterior walls - 85%. Glazing of buildings completed within the 65%, produced more than a quarter of the facade work.

This confirms and Larissa Chyvurina, CFO TMM: "Banks are now lending to only those objects that are at sufficiently high stage of readiness. You do not have 70-80% ready, but in its implementation the project should move beyond the state, when it was already clear that the project will be completed and will be completed given the company. According to her, basically what everybody is doing the emphasis is on residential projects, rather than on commercial real estate.

"But this is today's market realities, tomorrow may be different", - added «i» Mrs. Chyvurina. And noted that in addition to a high degree of readiness of the project, the main requirement to the borrower - the transparency of the company, providing all the information on the project, the presence of a surveyor at the facility, timely information on developments in the bank company.

Chattel mortgages

The problem with lending to developers, except guarantees the completion of projects, steel and liens. Previously, they were land, but now banks are on the ground do not count. Not interested in them and just property rights.

Thus, KDD Group has not yet received final confirmation of the decision on the loan. "Parties must have finally agree on a pledge to increase the credit line. Previously, the key part played 80 hectares of the project of residential complex "Zazimya in Zazimya (Brovarskoy rn Kiev reg.) And the project itself Sky Towers. The developer hopes that this pledge would be enough for a new credit agreement ", - said the company on the London Stock Exchange.

"The most successful pledge that developers might be interested bankers are under construction or completed projects", - says Yevgeny Grebenyuk. "Mortgages are simple - real estate. Real Estate, which generates income, "- Larissa Chyvurina. According to Alexander Romanov, as collateral banks are taking now, and real estate, and land, and equipment. However, they basically refused to accept a pledge of property rights. "Another issue with which the coefficient to the estimated value will be adopted by the pledge. For real estate it may be 50-70% of the value specified appraiser, provided by the bank. Most banks require the provision of additional guarantees from the owners of the company's loan agreements ", - adds Mr Romanov.

Prolonged negotiations

Larissa Chyvurina notes that in general, while new loans in the market rather an exception. "If companies continue to work on the development market, today and start negotiations on attracting new funding, pending confirmation of funding will take an average of three to six months, provided that the borrower meets the requirements for transparency. It should be borne in mind that for good credit developers need to prepare at least six months ", - says Mrs. Chyvurina.

According to her, now banks are much more scrupulous approach to the borrower, so all documentation must be in perfect condition and history of the borrower should be almost perfect. "Candidates, consistent with such requirements, a little" - sums Larissa Chyvurina.

According to Alexander Romanov, the loan amount may be limited as a potential borrower, primarily credit history, amount of collateral and restrictions on the part of the bank itself, for example, the amount provided per person.

"The account can go from millions to hundreds of millions of UAH UAH for loans from large state-owned banks, for example, or Oschadbank Ukreximbank. Today, the rate for the developer, ceteris paribus, be higher than the rate for the company from the real sector. Bargaining on the interest rate is unlikely to start with a mark below 25% per annum in UAH ", - explains Mr Romanov.

Improvement is not far off

When banks begin to lend more actively the construction sector, yet can not tell nobody. Too many aspects of the economy should improve. "I think it will happen at the same time as the National Bank and lawmakers to relax restrictions on foreign currency lending. There is no "long hryvnia, and without currency loans quick recovery is not" - says Eugene Hrebenyk.

Alexander Romanov believes that improving the conditions of lending by banks is possible only if the financial institution will see fewer risks in the activities of developers. "In this case - with the emergence of a stable tendency to restore the real estate market: reducing the vacancy, rising rental rates, the resumption of active trading in the segment of real estate. Seeing this picture, I think it will be possible not earlier than 2011, "- concludes Mr. Romanov.