Real Estate Development
Who is it intended for?
Any natural or legal person who is legally registered in the trade register and authorised to carry out real estate development activities can apply, provided they can prove ownership of the land allocated for the project.
Financing amount:
Financing can cover up to 70% of the total project cost.
SCAR statement review is mandatory for any loan application of an amount equal to or greater than two million dinars and must be completed prior to processing.
Disbursement of the loan will be made upon presentation of work progress reports signed by the consultancy office overseeing the operation.
Loan duration:
The loan duration can be up to thirty-six (36) months.
Interest rate:
- Applied interest rate: 5% per year, variable, excluding taxes. Interim interest may be paid quarterly or on the due date, at the developer’s discretion.
- Subsidised interest rate: 4%, within the framework of real estate development operations involving the realisation of the public programme for which the developer holds duly signed specifications with the Directorate of Housing and Public Facilities.
The terms for granting a loan at the subsidised rate are as follows:
The real estate developer must meet the eligibility criteria set out in the standard specifications relating to the interest rate subsidy.
Required guarantee:
A first-rank mortgage on the land and constructions of the real estate development is required.
These are the documents that make up the credit file for a property development project:
1. The loan application must specify the requested amount and be justified and signed by the authorised person.
2. The OPI data sheet must be completed and signed by the client according to the template provided by the agency.
3. A copy of the decision granting authorisation to practise as a real estate developer.
4. A valid copy of the trade register authorising real estate development activity.
5. For LLCs and joint-stock companies, the company articles of association and powers of the manager authorising him/her to contract loans and transfer the company’s assets;
6. A statement of the developer's, manager's or company associate's assets;
7. Cleared fiscal and para-fiscal documents dated within the last three months;
8. Accounting documents (balance sheets and income statement tables) for operating companies for the past three closed fiscal years;
9. Provisional balance sheets and income statement tables (IST) for the duration of the requested loan.
10. A copy of the property deed for the land, registered in the name of the applicant and duly recorded and published.
11. A valid regulatory construction permit (less than three years old) in the name of the applicant.
12. A detailed techno-economic study, including a technical sheet of the operation.
13. Duly signed architectural plans from the Directorate of Urban Planning, Construction and Housing.
14. A bill of quantities, cost estimates or execution contract (if applicable).
15. A copy of the agreement with the CTC inspection body.
16. Business group data sheet for affiliated companies.
17. An appraisal of the property proposed as a mortgage, issued by an accredited expert firm.
18. Authorisation to access the Bank of Algeria's risk database;
19. A copy of the certificate of registration in the National Register of Real Estate Developers.
IMPORTANT!
The Bank has set a deadline of 45 days for processing loan applications, starting from the date of receipt of the complete application file.