January 1, 2025

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Due Diligence: Institutional Standards for Every Modus Project

Due Diligence: Institutional Standards for Every Modus Project

Due diligence in practice:

  • Senior debt providers fund around 80 percent after thorough checks

  • Developer track record and financial position assessed in detail

  • Independent professionals engaged by banks for additional oversight

  • Modus fractionalises the 20 percent equity requirement for Members

  • Global investors gain access to prime developments with institutional safeguards

Why Due Diligence Matters

Property development creates opportunities, but without rigorous due diligence those opportunities carry unnecessary risks. Modus ensures that only premium developments are listed on the platform. This process brings institutional safeguards into a model designed for global investors, so access does not come at the cost of trust or oversight.

Independent Oversight

Senior debt providers, who typically finance around 80 percent of each project, conduct their own due diligence in collaboration with third-party professionals. This means that risk checks do not rest solely with Modus but are reinforced by banks and their advisors, who have substantial capital at stake. The involvement of multiple parties creates a robust framework for assessing every development.

Reviewing the Developer

The developer’s asset and liability position, track record, and prior delivery capability are all reviewed before approval. Experience, financial health, and past results determine whether a project can move forward. This process ensures that only developers who have demonstrated the ability to deliver are partnered with Modus Members.

Fractionalising Access for Members

Traditionally, high-net-worth individuals or institutions contribute the full equity portion of a project, often around 20 percent of the capital stack. Modus fractionalises this equity into smaller, accessible units. Members can participate in opportunities that were previously restricted, while still benefiting from the same level of due diligence applied to institutional investors.

Global Confidence, Local Rigour

Our finance structure enables Modus to open up the UK property market to investors from around the world. With every project vetted by banks, surveyors, and legal professionals, participants can be confident that their capital is supported by rigorous checks. This blend of global access and institutional-grade scrutiny defines the Modus approach to property development.