PROPERTY UNDERWRITING
AN UNDERWRITTEN EXIT STRATEGY FOR PROPERTY DEVELOPMENTS
LIVN provides qualifying property transactions with a structured Put Option designed to establish a defined contractual exit value for the underlying property.
Market Risk | Exit Risk | Capital Risk
DEVELOPMENT DOESN’T END WHEN CONSTRUCTION IS COMPLETE
A developer can successfully acquire a site, obtain approvals and complete construction — yet still face uncertainty when it comes time to sell or refinance.
- Market conditions can change
- Property values can move
- Sales can slow
- Refinancing conditions can tighten.
THE LIVN PUT OPTION
LIVN IS DESIGNED TO ADDRESS THE EXIT
For qualifying transactions, the LIVN Put Option provides a contractual mechanism designed to establish a predetermined future purchase price for the property, subject to the terms of the relevant transaction documents.
A STRUCTURED CONTRACTUAL EXIT MECHANISM
LIVN Put Option gives the option holder a contractual right to require LIVN to purchase the underlying property at the predetermined option price, subject to the relevant contractual terms and conditions.
PROPERTY: Development begins
CAPITAL: Debt + Equity + Structured Funding
LIVN PUT OPTION: Predetermined contractual purchase price
UNDERWRITING: Specialist insurance / reinsurance structure
EXIT: Option exercised in accordance with the contract
DEFINED CONTRACTUAL EXIT
A structured mechanism designed to provide greater certainty around the property’s future exit.
WHAT DOES LIVN CHANGE?
EXIT CERTAINTY
A defined contractual mechanism for the future exit of a qualifying property.
MARKET RISK MANAGEMENT
Designed to reduce reliance on future market conditions at the time of exit.
LENDER SUPPORT
The Put Option may be capable of assignment to a lender, subject to lender acceptance and transaction terms.
EQUITY RISK MANAGEMENT
Designed to provide greater certainty around the developer’s invested capital.
UNDERWRITTEN | INSURED | REINSURED
LIVN: Put Option Contract
LIVN provides the contractual Put Option structure for qualifying property transactions.
INSURANCE: Specialist insurance underwriting
The relevant contractual obligations are supported through an insurance structure, subject to the applicable policy terms and conditions.
REINSURANCE: Additional risk capacity
Reinsurance provides additional risk capacity behind the insurance structure, subject to the relevant arrangements.
A CONTRACTUAL STRUCTURE SUPPORTED BY SPECIALIST RISK MANAGEMENT
The combination of the Put Option, insurance and reinsurance arrangements is designed to provide greater confidence in the overall exit structure for qualifying transactions.
WHO CAN BENEFIT FROM LIVN?
PROPERTY DEVELOPERS
A structured mechanism designed to provide greater certainty around the project’s future exit.
LENDERS
An assignable contractual exit mechanism may provide an additional layer of security, subject to lender approval.
INVESTORS
Access to selected property transactions incorporating specialist underwriting and structured exit arrangements.
PROPERTY OWNERS
A potential mechanism for establishing a predetermined future purchase price for qualifying assets.
LIVN DOES NOT ELIMINATE DEVELOPMENT RISK.
The LIVN Put Option is designed to address a specific part of the property development risk equation — the future exit and market value of the property. It does not remove the risks associated with developing the property itself.
LIVN IS DESIGNED TO ADDRESS
- Exit Risk
- Market Risk
- Property Value Risk
- Refinancing / Funding Risk
LIVN DOES NOT REMOVE
- Construction risk
- Development approval risk
- Cost overruns
- Developer performance risk
- Project execution risk
Good development fundamentals remain essential. LIVN is designed to complement, not replace, sound development strategy and execution.
WHAT IF YOU COULD ESTABLISH YOUR EXIT VALUE BEFORE YOU START?
That’s the proposition behind LIVN.
For qualifying property transactions, the LIVN Put Option provides a structured contractual mechanism designed to establish a predetermined future purchase price for the underlying property, subject to the relevant transaction terms and conditions.
LIVN structures are subject to eligibility criteria, due diligence and the terms of the relevant contracts. The availability and acceptance of any Put Option, funding or insurance arrangements are subject to transaction-specific approval.
MAKE AN ENQUIRY