Document background
A Forward Funding Agreement is utilized in property development scenarios where a funder (typically an institutional investor or property company) agrees to acquire a site and fund its development. This sophisticated agreement, tailored for the Australian legal framework, outlines the entire development funding structure, including land acquisition, construction funding, development obligations, and completion requirements. It's particularly relevant for large-scale commercial, residential, or mixed-use developments where developers seek upfront funding commitments. The agreement addresses key aspects such as conditions precedent, payment mechanisms, development obligations, cost controls, and risk allocation, while ensuring compliance with Australian property, planning, and financial services regulations. The Forward Funding Agreement differs from traditional development funding as it typically involves the funder taking a more active role in the development process and assuming certain development risks from the outset.
