A loan drawn down in stages against verified progress to fund development, usually interest-only during the build and repaid or refinanced on completion.
Related terms
- Cost of capital
The blended required return on the debt and equity funding an investment.
- Covenant
A condition in a loan agreement the borrower must maintain, such as a minimum DSCR.
- Credit facility
A pre-agreed line of financing a borrower can draw on up to a set limit over a defined period, revolving or term, rather than a single lump-sum loan.
- Debt service coverage ratio (DSCR)
NOI divided by debt service; measures the cushion for repaying a loan.
- Debt syndication
Spreading a large loan across several lenders led by an arranger, so no single bank carries the full exposure — standard for large projects across the Gulf and…
- Debt yield
Net operating income divided by the loan amount, expressed as a percentage; a leverage-independent measure lenders use to size loans and gauge downside risk.
- Drawdown
The act of drawing funds from a committed loan facility or of a fund calling capital from its LPs; the point at which committed money is actually deployed.
- Escrow
A neutral account holding buyer funds until contractual conditions are met, protecting off-plan buyers.