Document background
Forward Funding Agreements are utilized in significant property development projects in Ireland where a funder seeks to secure a completed development by providing funding throughout the construction phase, rather than purchasing upon completion. This type of agreement is particularly relevant in commercial property development, where substantial upfront funding is required. The Forward Funding Agreement needs to comply with Irish property law, construction regulations, and financial services requirements, while addressing complex aspects such as planning permission, development obligations, payment mechanics, and risk allocation. It's commonly used for large-scale commercial developments, retail projects, and mixed-use schemes where institutional investors or major property companies wish to secure future assets while sharing development risk. The agreement typically includes detailed provisions for cost monitoring, development specifications, and quality requirements, reflecting the funder's dual role as project financier and ultimate owner of the completed development.
