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
