Project phases

Not two projects within property development are alike. However, most projects go through virtually the same phases before being completed and handed over, fully let, to the investor.

At the beginning of a project, the Group’s project developers seek out locations based on the specific requirements of tenants and investors.

When a location has been identified, a rough budget is drawn up.

As a main rule, the Group secures an option to acquire the selected plot of land. That ensures the Group the right to the property while the necessary planning basis and other regulatory approvals are obtained without the Group committing to buying the plot of land.

In the meantime, independent architects prepare a project outline and the Group’s project engineers review construction costs indicated in the project proposal.

Before acquiring the land, the Group seeks to enter into pre-let agreements with anchor tenants.

In addition, the Group seeks to enter into project takeover agreements with selected investors.

In addition, a final budget is prepared and approved by Management.

Subsequently agreements are concluded with contractors and subcontractors to perform the actual construction work. Project construction can be financed through forward funding agreements with investors or by the Group providing financing. In a forward funding agreement, the Group ensures that the current project construction costs are paid by the investor rather than by the Group. If a project is not forward funded, the Group will endeavour to sell the project before completion.

If TK Development has not sold a project to an investor before completion, the Group retains the day-to-day operations of the project and regularly assesses potential opportunities for selling it to an investor (Asset Management).