| Title |
A Study on the Scope of the Recognized Equity Capital of Developer in Real Estate Project Finance Loan Screening |
| Authors |
Lim Suhong ; Jang Hokwan ; Lee, Sangyoub |
| DOI |
http://dx.doi.org/10.6106/KJCEM.2020.21.6.075 |
| Keywords |
Developer; Real Estate PF; Equity Capital; AHP; Fuzzy |
| Abstract |
This study intends to explore the scope of the recognized equity capital of developer in real estate project finance loan screening. The factors which can be recognized as equity capital are categorized into 24 factors with 3 upper categories and 6 mid categories. In order to develop the importance weight of factors, AHP and Fuzzy methodologies are implemented based on survey analysis by experts in financial institutions. Research findings indicate that the land cost, evacuation cost, and real estate acquisition tax as land-related direct costs, and the design cost, traffic impact assessment cost, underground safety impact assessment cost, boundary surveying cost, and geological survey cost as the construction permit-related costs are higher than any others. On the other hand, the supplementary costs related to the operation of the developer show very low importance weight. Accordingly, the hierarchy of factors for equity capital should be clearly developed in order to minimize any dispute and prevent non-performing loans to real estate project finance. |