Real estate finance (REF) transactions are either investment finance transactions or development finance transactions, depending on whether the property is being purchased as an investment (ie it is already generating revenue) or whether the property is being purchased to be developed. Development finance transactions are more complex than investment finance transactions although they are less commonly encountered. For a general introduction to real estate finance development facilities, see Practice Notes:

1. •

   Introduction to real estate finance—the lending structure, and

2. •

   Real estate finance—development facilities—key features

The Loan Market Association (lma) has produced a recommended form of facility agreement for use in real estate finance development transactions together with a user guide, both of which are available to members of the LMA—see the Single Currency Term Facility Agreement for Real Estate Finance Single Property Development Transactions (LMA REF Development Facility Agreement) and user guide on the LMA website. Note that LIBOR based facilities agreements should no longer be used. The form of LMA REF Development Facility Agreement which was last revised by the LMA