Flowchart Legend

  • Interest & capital repayments:
1st trust deed payments and return of borrowed capital.
  • Debt Finance (up to 70% of cost):
This represents the 1st trust deed loan from the bank.
  • Equity finance (10-30% of cost):
The portion of equity capital funded by SCG.
  • Preferred rate of return:
The annual rate of return due SCG. If cash flows are not sufficient to satisfy the obligation, the balance will accrue.
  • Excess Funds:
All funds remaining after approved expenses, the first trust deed loan payment, and the preferred rate of return are sent into a reserve account to be distributed as agreed.
  • Settlement proceeds:
This item includes accumulated positive cash fl ows beyond the preferred rate of return, refinance proceeds, and sale proceeds.
  • Developers Contribution:
Includes developer advances for the acquisition of land, architectural, and governmental fees. This also includes any equity contribution from the Developer/Investor.
  • Reimbursements:
Approved reimbursements paid to the developer/investor for items
such as land purchase, architectural, plans and fees etc.
  • Project Payments:
Approved payments paid to 3rd party contractors for work completed benefiting the development project.
  • Positive cash flows:
Income above expenses coming from the project.

Developer Information

SCG can provide up to 100% of the equity capital, less transactional costs, for qualified real estate projects and developers.*
The following outline is intended to provide a basic description of SCG’s Development Equity Partnership Program.

What SCG is looking for in a developer

  • Experience and a proven track record
  • Reputation and reliability
  • Financial stability
  • A keen understanding of the local market and product
  • Creativity in identifying and capitalizing on additional revenue sources

What SCG is looking for in a Project

  • Strong profitability
  • Excellent site selection
  • Long term market viability
  • Long term lease agreements (where applicable)
  • Local relationships

SCG funding requirements

  • A developer or investor seeking equity capital from SCG should obtain the first trust deed commitment and will be the signatory for the first trust deed.
  • SCG will hold a participating second trust deed.
  • The developer must own or control the land. Any deposit to purchase ground will be provided by developer until all approvals are finalized at which time it can be reimbursed from the equity loan.
  • The developer must complete planning and approval process before equity capital is funded.
  • These costs are reimbursable from the equity loan.
  • Developer must complete a credit and background check.
  • SCG will work hand in hand with developer to secure and approve third party contacts.
  • Approval by SCG of project analysis and site evaluation.

*SCG approves real estate projects and developers based on its own investment criteria.


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