Real estate finance: Loan Market Association real estate finance term sheets for investment transactions and for development transactions—key features
Real estate finance: Loan Market Association real estate finance term sheets for investment transactions and for development transactions—key features

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Real estate finance: Loan Market Association real estate finance term sheets for investment transactions and for development transactions—key features
  • Anatomy of the LMA REF Investment Term Sheet
  • LMA REF Investment Term Sheet: Section 1—senior facility terms
  • Security package
  • Guarantors
  • Property protection loans
  • Prepayment and cancellation
  • Bank accounts
  • Representations and warranties
  • Information undertakings
  • more

The Loan Market Association (LMA) has produced two English law term sheets for real estate finance (REF) transactions. Their purpose is to aid parties in agreeing key commercial terms upfront, providing a clear position from which to negotiate documentation. The English law term sheets are:

  1. the LMA Term Sheet for use with single currency term facility agreement for real estate finance multiproperty investment transactions (the LMA REF Investment Term Sheet), and

  2. the LMA Term Sheet for use with single currency term facility agreement for real estate finance single property development transactions (the LMA REF Development Term Sheet)

The LMA REF Investment Term Sheet and the LMA REF Development Term Sheet are referred to as the LMA REF Term Sheets in this Practice Note.

The LMA REF Term Sheets include all the usual provisions that you would expect to see in a term sheet for a loan transaction. This Practice Note focuses on the key features of the LMA REF Term Sheets that are specific to real estate finance transactions. For more information on term sheets in general, see:

  1. Practice Note: Term sheets

  2. Practice Note: Drafting and negotiating term sheets in loan transactions

  3. the drafting notes to Precedent: Term sheet (for a term loan facility): single company borrower—bilateral—with or without security or a guarantee

  4. the drafting notes to Precedent: