A question we hear more often from developers is where to find the capital for the next project. In our experience, the capital is there. International fund managers and family offices are actively looking at Dubai. What they are not looking for is an idea on a spreadsheet.
Before committing, serious capital wants evidence that the project is already being run properly:
Funders price risk. A project without a clear scope, programme or cost control carries more of it, and that shows up as tougher terms or no offer at all. A project that arrives with this work done is easier to assess, faster through due diligence and stronger in negotiation.
Preparing a project for funding is not separate from managing it. The feasibility, cost plan, programme and procurement strategy that a funder wants to see are the same documents a good PMC produces to run the project.
As part of a PMC mandate, DNA can support the funding of a project: structuring it, preparing it for due diligence, and presenting it to the international fund managers and family offices we work with. We do not act as a lender or broker, and funding is never guaranteed. What we do is make sure a project stands up to scrutiny, and then manage its delivery so the investors’ confidence is justified.
Investors want to know who they are dealing with and who carries which risk. Settle the project vehicle, the signatories and the person on the owner’s side who approves payments and design decisions before you present the project. Appoint consultants on clear, complete scopes so there are no gaps between them, and choose the procurement route before the numbers are shown to anyone. A clear structure answers many due diligence questions before they are asked.
Most due diligence follows a similar pattern. Expect to be asked for:
When these documents are current and consistent with each other, due diligence moves quickly. When they contradict each other, every inconsistency becomes a question, and every question adds weeks.
The same problems come up again and again. The appraisal only works with no contingency. The programme assumes approvals will be quick. The cost plan came from the contractor bidding for the work. Nobody on the owner’s side is clearly accountable for decisions. None of these is fatal on its own, but together they tell an investor that the project will be hard to control once their money is in it.
Funding is the start of a relationship, not the end of a transaction. Investors expect regular, honest reporting: progress against programme, forecast completion, cost against budget including variations, payments certified and the main risks. A project that reports this way from the first month keeps its investors’ confidence and makes the next raise easier.
Our free Developer’s Handbook includes a section on preparing a project for funding and a ten point checklist to complete before capital is committed.
DNA Project Management acts as PMC and owner’s representative for developers, corporate and private clients, with over AED 390 million in projects delivered across mixed-use, residential, commercial and logistics developments. Our principals were developers before they became consultants, so we approach every project the way an owner would.
See our services or start a conversation about your development.
How long does it take to prepare a project for funding?
It depends on how much of the work already exists. A project with a current appraisal, cost plan and programme is much closer than one starting from a concept, which is why this work is best done early.
Can DNA arrange funding without a PMC appointment?
No. Funding support is offered as part of a PMC mandate, because the structuring and due diligence work depends on being involved in how the project is run.
At what stage should I prepare for funding?
Ideally before land acquisition or design are committed, when the structure of the project can still be shaped.
Related reading: Development Feasibility in Dubai: What Investors Need to Know