Commercial Real Estate Finance
The Full Story
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To keep it brief, in the past we have focused on the beds sector in the Pan European market.
"Beds" encompasses so many different assets. From 'Purpose Built Student Accommodation" (PBSA) to Built to Rent for the over 55s market.
However, nothing in the commercial property finance sector stays the same. As demand for specific sectors in the market continually shifts, so does our focus.
Predominantly, the same junior & senior lenders that favoured Build to Rent in London in 2022, have shifted their attention to retail and hospitality in late 2024. The lenders stay the same, it's the market that changes and we are here as the ever constant advisory firm that helps all parties concerned irrelevant of the sector.
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We aim to be involved in every aspect of the asset's life cycle.​
Financing the Life Cycle of an Asset
Property Purchase
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Bridging loans on land at 55% LTV for a PBSA scheme in Berlin.
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Purchasing income producing office blocks that will become vacant in 2 years in London for £33m. Purchasing on an investment term product gives the client enough time to put planning permission in place to add value to the asset.
Development Financing
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1st Lien- £10m+
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2nd Lien- £20m+
Transactions in London, Paris & Manchester for 1st Lien or "Junior Debt". These have came in the form of preferred equity with IRR's between 19-22% over 2-3 year build cycle.
2nd Lien or "Senior Debt" has came our relationships in the institutional space. However this is dependant on if it is a special situation and the leverage required. We predominantly transact at 5% over SONIA for residential & 6% over SONIA for hotels with varying levels of leverage.
Stabilisation Loan
BTR scheme in Paris stabilised at 2.75% over SONIA at £83m (September 2024) on a 2 year period.
Retail outlet scheme in South East of England stabilised at 4% over SONIA at £61m.
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Investment Term Loan
Social Housing Portfolio of 400 apartments across 2 Multi Unit Freehold Blocks across 2 jurisdictions in West Europe. 70% LTV with a loan amount of £23m