Introduction
Our client is a notable private investor headquartered in the Netherlands, with a diverse portfolio of investments encompassing various asset classes across the country.
In this specific instance, the client had converted a former industrial building into a premium residential complex featuring luxury apartments primarily aimed at expats. The client had a distinct strategy of long-term ownership in mind for this complex and had no intentions of selling it.
Asset Partners was enlisted to support the client in identifying the optimal financing solution, with a preference for exploring new financing avenues.
Client goals
The client had initially financed the acquisition and renovation of the complex entirely with their own equity. Subsequently, the client's goal was to secure long-term financing on favorable terms for the complex, post-completion and once it was fully leased, effectively recapitalizing the initial equity investment.
The client's primary objectives were: i) To obtain the longest available financing term, ii) To secure the most favorable interest rates, and iii) To structure the financing without financial covenants. Additionally, the client expressed a desire to use the available liquidity to make substantial repayments whenever feasible.
Activities
Following a thorough understanding of our client's needs, we initiated the process with a comprehensive property analysis. An integral component of our analysis involves conducting an on-site visit, allowing us to firsthand assess both the property and its location, and make detailed observations regarding the on-site situation.
In line with our client's specific request, we followed a targeted approach by engaging a limited number of financiers. To ensure a favorable and predictable outcome, we conducted a thorough analysis of the property's characteristics and our client's preferences. This analysis was then matched with the financing criteria of financiers operating in the Netherlands. Based on this evaluation, we collaboratively identified a shortlist of four financiers. Subsequently, we prepared a comprehensive financing memorandum and approached these financiers to solicit financing proposals. This select group of financiers included two institutional lenders, chosen for their ability to provide fixed interest rates for up to 25 years, and two German banks.
After evaluating multiple offers and engaging in a round of non-exclusive negotiations, a German bank emerged as the optimal financing partner. We identified this bank as willing to align with all our client's requirements. Subsequently, we conducted thorough negotiations to fine-tune the terms, and the transaction was successfully executed. During the closing phase, we placed special emphasis on optimizing the loan documentation and collateral agreements to best align with our client's needs and maintain consistency with other financing arrangements in their portfolio, ensuring manageability for our client.
Asset Partner managed the entire process, from inception through closing and fund disbursement.
Result
Our guidance successfully secured the desired long-term financing for our client, with highly favorable terms and notably, without any financial covenants included in the loan agreement.
Get in touch
Also looking for an advisor who doesn't finance real estate from behind a desk? Contact Asset Partners and find out how we can help.
