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Real estate project financing

Loans for property developments that are repaid from the project's own cash flows, such as presale proceeds. Contractors or trust firms often guarantee them.

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Korean real estate trust firms have lent 9.5 trillion won of their own money to troubled building projects

Fourteen Korean real estate trust firms had lent 9.52 trillion won of their own money to troubled building projects by mid-year, up 6.1% in six months. Regional builders that cannot meet project-finance guarantees are passing the losses to these firms, so part of Korea's construction bust now sits on lenders' books.

Publishers:en.sedaily.com

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