Document background
The Forward Funding Agreement is utilized in Danish property development projects where an investor seeks to fund a development from its inception rather than purchasing a completed asset. This document is essential when institutional investors or funds wish to secure prime property assets early in their development cycle while developers require upfront funding for construction. The agreement, structured under Danish law, comprehensively addresses funding mechanics, development obligations, risk allocation, and completion requirements. It includes specific provisions for compliance with Danish construction regulations, planning laws, and property transfer requirements. The document is particularly relevant for large-scale commercial or residential developments where traditional funding approaches may not be suitable, and where early investor involvement is beneficial for project viability.
