In purchasing real estate, such as land or a building, Seller Financing may be considered, by choosing repayment by installment or deferred payment in consultation with the seller by offering incentives, including an opportunity for participation in a development project, to the seller.
For the seller’s earlier recovery of trade receivables, an ABS may be issued, using trade receivables as underlying assets, thus invigorating financing based on repayment by installment.
Landowners’ participation in equity share
This refers to a method of having the owners of land or buildings take part in equity shares of the SPC, a key factor for the tourism facility project, to secure real estate investment funds through Seller Financing.
Land exchange
Where the site of a tourist facility is owned by multiple owners and involves diversified classifications, the following method may be chosen: a comprehensive development plan is set up for the entire area, the tourist facility complex is formed and then land parcels are returned to the landowners based on the original share.
In such a case, the land remaining after the return of the relevant portions to original landowners may be sold to pay project expenses or used for the project purpose. It is also possible to ask the landowners to make in-kind investment in the SP, using their land.