In European development, a growing trend is emerging — investors enter the project before construction begins, often at the stage of land acquisition and permitting. This model, known as early equity partnership or forward funding, enables developers to accelerate key processes, reduce risks, and bring the project into the construction phase faster than under the traditional sequence “land → financing → construction.” 

The logic of the instrument is straightforward: the investor takes on part of the project’s capital and risk before construction starts, and the developer gains financial predictability and can move to the next stage earlier. Below are three mechanisms that save six to twelve months. 

 Accelerating the obtaining of Fremdfinanzierung 

Bank financing still requires a high degree of certainty: a confirmed budget, detailed cost plan, signed construction contracts, risk structure and guarantees on timelines. In the traditional model, the developer must first close the equity, then form the project documentation, and only after that approach the banks. 

When a partner comes in at the land stage, the situation changes: 

• banks receive confirmation that the equity is already closed; 

• the project’s risk profile declines, as capital is shared between two parties; 

• the structuring process takes less time because key deal parameters are agreed in advance. 

For banks, this means lower risk of early-stage financing. For the developer, it means the process of obtaining Fremdfinanzierung begins earlier and moves faster. In practice, this saves 3–6 months. 

Reducing time spent on approvals and project preparation 

One of the longest phases of development remains the approvals process: urban planning conditions, permits, amendments to project documentation. When the developer works alone, many steps must be done sequentially — first closing the capital, then technical work, then approvals. 

Early-stage partnership allows these processes to run in parallel: 

• investment documents and deal structure are agreed in advance; 

• designers, consultants and lawyers work within a pre-approved financing model; 

• the investor can take on part of the due diligence, reducing repeated approval cycles. 

As a result, the project reaches full permitting more quickly — shortening the timeline by another 2–4 months. 

 Preventing delays caused by cash-flow gaps 

At early stages, developers commonly face cash-flow gaps: payments to designers, legal teams, pre-construction works and municipal procedures must come from their own capital. When cash flow is tight, individual stages slow down. 

An early equity partner eliminates these risks: 

• financing is allocated according to milestones; 

• the developer gains confidence that all costs before bank financing are covered; 

• timelines are not pushed back due to delayed payments. 

This ensures continuity of the process — crucial when working with contractors, municipal authorities and potential tenants. Here, time savings range from 1 to 3 months. 

Conclusion: the new normal for European development 

In total, these three mechanisms produce a 6–12 month acceleration — depending on project scale and permitting complexity. Early-stage partnerships are becoming increasingly common in Europe: they allow developers to launch projects faster, while investors receive clearer risk structures and more transparent control. 

For the market, this means a gradual transition to a model where equity partnerships are formed not after project design is completed, but at the very beginning — at the land stage, when the correct deal structure determines the stability and speed of project execution. 

Commentary from M24 Investment Division: 

Early equity-partnership formats enable developers to accelerate key project stages through parallel processes and reduced preparatory requirements before obtaining Fremdfinanzierung. Closing part of the capital at the land stage lowers the project’s risk profile, simplifies interaction with lenders, and ensures continuous financing before construction begins. Combined, this shortens the time to project launch and forms a more predictable development trajectory.