Residential properties in difficult locations
A financing solution needed to be found for this company which secured a portfolio with a long-term loan – after a partial sale of properties and despite minimal equity capital.
A package of residential property consisting of B and C locations and locations in a redevelopment area was to be financed on the condition that one part should be resold and the other part transferred to the client’s portfolio.
It was necessary to find a bank to finance the short-term transition (6 months) as well as the senior loan (10 years), with minimal equity share.
The credit was structured in such a way that it was possible to submit either notarial contracts with deferred conditions or hard LOIs for the transitional part. As a result, the short-term part was rated very highly. The long-term part, roughly half of which was situated in the redevelopment area, was also financed by additional collateral from the company, both financing measures came from a single source. (Financing sum € 30 million)