Property One Group

Financing examples

Example 1: Project development

Background information:

  • Acquisition of land followed by an application for a building permit and the construction of condominiums
  • Presale of the condominiums can begin once the building permit has been granted

 

ONE Real Estate Debt Fund loan:

  • Value is created in several phases of a development
  • The subordinated loan allows construction work to start and supplements the bank financing provided
  • It can be repaid by increasing the bank loan or using buyer down payments

 

Example 2: Bridge loan

Background information:

  • Acquisition opportunity arising at short notice (e.g. purchase of an investment property)
  • Quick bridge financing required to secure the property

ONE Real Estate Debt Fund loan:

  • Bridge loan with a term of three months, for example, financing up to 80% of the market value
  • Repayment via bank refinancing (residual amount carried forward as a subordinated loan for a maximum period of 36 months)
  • Advantage: quick processing, leaving enough time available to arrange primary financing (e.g. a bank mortgage)

 

Example 3: Existing portfolio

Background information:

  • Acquisition or construction project planned, but only limited free capital available at present
  • Existing portfolio (investment properties generating rental income)

 

ONE Real Estate Debt Fund loan:

  • Subordinated loan secured by existing properties
  • Repayment via the rental income that is generated or by increasing the primary financing
  • Advantage: purchase opportunity can be exploited