LENDER AND INVESTOR INFORMATION

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Large ticket commercial funding for case generative assets for up to 60 years

This Assets Under Management Fund that can provide stabilisation debt for up to 60 years at very low

interest rates. The profile is as follows:

Geographically- Austria, Germany, Netherlands, Republic of Ireland, USA, and the UK.

Products available:

• Large ticket long term mortgage

• Large debt and refurbishment facilities

• Stabilisation loan when the asset is about to generate income

Asset Sectors:

• Build to rent, offices (pre-let)

• Hotels

• Student accommodation

i.e., assets that are ‘about to open their doors’ to generate income.

When do they lend:

• An asset has just been built or refurbished, is about to generate income and needs a long-term

facility.

• Refinance a cash generative asset needing a long-term facility

Minimum loan £70 Million

Maximum loan £500 Million

Term:

• 15 years interest only

• 60 years capital and interest

Interest rate:

• On 15 years the interest rate all in is 4.5%

• On 60 years, the interest rate all in is 3.75%

Maximum loan to value:

• 45% but with a syndicated partner 60% to 75% loan to value.

Preferred Equity Provider alongside Hotel ‘Operator’ or ‘Flag’ initiative

A major investment fund that can provide mezzanine or preferred equity. Their profile is:

Geographically:

Greece Italy Cyprus Spain France Poland Romania

Asset Sectors:

• Living Sectors

• Hotel and Resort2

Term: 3 to 5 years

Minimum Ticket: €15 Million

Maximum Advance: 85% of project costs

Maximum Ticket: €100 Million

Also note:

We are working with the following hotel operators who will operate hotels funded by the above:

IHG Hyatt Marriott

Residential development finance provider operating in the Nordics area.

The lender profile is:

Funded by- Pension Funds, Family Offices, and a major Financial Institution

Geographical Locations: Denmark, Finland, and Sweden

Product- Residential Real Estate Development and potentially Logistics

Minimum Loan- €5 Million

Maximum Loan- €50 Million

Sweet Spot-€10 Million to €2 Million

Max Loan to Value- 75% pre finance costs

Term- 15 months to 30 months

Interest rate- 10%

Note- Sponsor needs good NET worth and the contractor needs to show experience

Major bank based in New Jersey, USA. They have $60 Billion Assets Under Management.

The bank has the following profile:

Products:

• Stabilisation Loans

• Revolving Facilities

• Construction Loans

• Business Finance

• Long Term Finance

• Acquisition Finance

Asset Sectors- All business and property sectors

Mezzanine Strip 80% LTV

Minimum Loan $20 Million

Term 2 to 5 years

Maximum Loan $200 Million

Interest Rate SOFR +2% to 4%

Loan to Valuation 65%

Loan to Costs 65%

Geographically - All major locations

This lender is very well capitalised and eager to do business.

A very flexible and common-sense thinking investment fund. The profile is as follows:

Founded in 2019. The fund uses its own capital as well as syndicated funding with pension funds, high

NET worth individuals etc.

Geographically - UK, All Europe (including Eastern Europe), Israel, Caribbean Islands, US, and

Canada.

When will they lend or invest

• Repositioning an asset (office to

• They will acquire for their own

hotel)

portfolio

• Liquidity requirement

• Developers or operators in distress

• Ground up development

What are their products:

• Preferred equity

• Whole loan (stretch senior debt)

• Mezzanine Finance

Minimum Loan

• Preferred equity: €20 Million

• Whole loan: €25 Million

• Mezzanine loan: €15 Million

Maximum Loan- There is no maximum loan

Preferred asset sectors (where all products available including preferred equity:

• Marinas

• Hotels

• Hostels

• Public Houses

• Holiday Parks

Additional Asset Sectors - ‘Bed’ (preferred equity Not available)

• Build to sell

• Build to rent

• Student accommodation

Additional Comments:

With reference to the client’s capital input or ‘skin in the game’ a sensible contribution needs to

be input to show commitment, i.e. a small contribution to be negotiated with the fund manager

as is the profit share.

Planning risk can be considered where it is possible to have a ‘Plan B’ or ‘Safety Net’. For

example, an office block being rented out. If the proposal is to obtain planning permission to

convert this to residential apartments etc, but the planning application is declined, there is the

safety net of the office rental income

A bespoke fund that is active in various jurisdictions in Europe and the USA. Their profile is:

Geographically: USA, Western Europe, The Nordics, India.

Asset Sector: Multifamily, hospitality, data centres etc

Finance Products:

• Equity

• Debt

• Whole Loan

• Mezzanine

Minimum Ticket: $100 Million

Maximum Ticket: $350 Million

Return on capital required: On the whole loan 15% IRR.

A global fund willing to invest as Equity Partners or outright purchases. They will support

Developers and specialist asset purchases.

Geographically: UK, Ireland, Netherlands, Portugal, Spain, and Italy

Minimum investment: €10 Million

Maximum investment: €50 Million

Target returns: 20% IRR

Asset sectors:

• Student accommodation

• Build to sell

• Hospitality/Hotels

• Office to residential conversions

Examples of when they invest:

• Distressed projects that have gone into insolvency

• Joint Ventures with Developers wishing to grow quickly

• Hotels being bought undervalue and being repositioned

• Speculative purchase of land with planning permission to build hotels

• To achieve the minimum ticket size of €10 Million, the fund will support a Developer with

3 projects needing €5 Million equity per project

Pan European fund that focuses upon student accommodation. The fund is happy to forward

fund the project whereby they purchase the land and pay the developer to build out the project.

This means the developer inputs little capital. The fund is also content to fund simultaneously up

to five projects with the developer. The fund will enter into a Joint Venture agreement with the

developer. Furthermore, this fund is very actively invested and has large funds to deploy. Finally,

the following points are appropriate:

Geographically: Netherlands, Italy, Germany, UK

Deal Size: 500 units €100 Million

Locations: Tier 1 and Tier 2 cities in the above jurisdictions

No planning risk is acceptable

Forward Funding over 2 years to complete the project. Thereafter the asset is stabilised over the

following three to five years. Thereafter the fund may sell the project.

A global fund with an excess of $70 Billion AUM. The fund is a very active source of corporate

finance, brief details of which are below:

Client profile - Business achieving profits of €15 Million or more.

Geographically - The UK, Europe (except France) and the USA

Sectors - All trading businesses sectors including property investment such as self-storage.

Finance facilities-

• Acquisition or mergers

• Asset based lending

• Expansion

• Working capital

• Restructuring

• Cash flow financing

Minimum Loan- $15 Million

Maximum Loan- €200 Million

Term- 5 to 7 years

Interest rate- Euribor + 6% to 8%

This fund is well capitalised and able to move quickly to support companies in a ‘transition

phase’

A major fund in the USA who focuses on real estate only. They are flexible and innovative. Their

profile is as follows:

Geographically- USA

Asset Sectors- Property related only i.e. No business loans.

The asset sectors include:

• Hotels

• Residential- multifamily and BTR etc

• Commercial

Products available-

• Discounted debt or distressed

• Preferred equity

• Construction/ Development

• Bridging

• Mezzanine

Loan size- $25 Million to $125 Million

Term- Maximum 5 years

Interest rate- Debt is SOFR + 3 %

Mezzanine and Preferred equity- high teens

Maximum LTV- 75%

A Wealth Management Fund within an International Bank. It is a little different to our usual Real

Estate funding. However, I do believe that it can be very helpful where a wealthy client is asset

rich but cash poor. The London office usually funds up to £10 Million. But the main office can

fund up to £100 Million + loans.

The purpose of the facility can be quite varied, but it must be legal. The facility can be a term

loan for 5 years or a ‘revolving facility’ like an overdraft. The maximum LTV is 60%. The interest

rate is very competitive at the Bank of England Base rate +1.35%. The arrangement fee is 0.5%.

There are no early repayment fees. As noted within the below, overseas borrowing is possible.

The asset security should be real estate. However, shares in listed companies are also

acceptable.

Case Studies

A KC Barrister with property valued at £26 Million was provided with an ‘overdraft’ facility of

£13 Million at BBR +1.35%

Shares in listed companies but held in a BVI structure were security for a loan

A client with no income but £10 Million cash offshore was granted a mortgage of £6 million.

For more experienced developers looking grow but lack liquidity

New Equity Provider Partner

Guidelines for Developers

Location

• UK wide - excluding inner London, not within North and South Circulars

• Product appropriate attractive locations

• Demonstrable demand Property Type

• 5-20 units typically over a single phase

• Ideally 3-5 bed family housing, albeit a small number of apartments could be considered

• May consider PD for the right scheme

• Traditional Build

• Price point up to circa £1million in unit values

• £800per sq ft max subject to local values

• Must have planning.

Developer Profile

• Experienced developer: young teams with relevant professional background considered

• Existing and demonstrable track record

• Strong preference for developer procuring via sub-contract management

• Will consider 3rd party contractors on JCT basis

• Will recognise land gain where the developer can show they have added value. (and

willing to consider a release of a proportion of such equity on Day 1)

• 100% equity for those with suitable track records etc

• We seek long-term relationships, not one-off transactions

• Due diligence process undertaken to approve developer as partner (thereafter repeat

scheme decision based on project)

• Willingness to engage in sustainability objectives.

Project Financial Profile

• Senior interest normally rolled up

• Typically requires min 25% ROC

• Senior debt arranged (0.5% fee to project)

• Will accept developers lender subject to suitability

• Term 18 - 30 months

• Typically, 12 month build then sales period determined by volume.

JV Terms

• £0.75million to £3million equity.

• Will consider and will go materially larger for mixed use schemes

• 7% priority profit-share on equity (as look - back IRR), then

• Profit shares typically between 40/60 to 60/40 subject to scheme returns

• May require min’ fixed multiple

• Will negotiate alternatives

• Typically, 100% equity to approved development partner.

Senior Lending

• Typically, 60% GDV on senior; max 65%

• Established reputable lenders

• No mezzanine or split capital stacks.

Structure

• JV structure - Vehicle will be a fund SPV (UK LLP)

• Normally fund and Developer as partners

• Developer contracted through an LLP Agreement and DMA which covers profit sharing

arrangements

• Developer responsible for cost-overruns

• Developer provides cost-overrun guarantee to senior debt provider

• Fund normally provides interest cover guarantee to debt provider

• Full step-in rights for breaches

• Materiality clauses for variation to spec’

• Key-man cover required if appropriate

• Professional Indemnity Insurance required

• Straightforward legal documentation

The below facility of a flexible lender for Northern Europe providing refurbishment funding and

owner-occupied commercial term loans.

Geographically:

Sweden

France

Norway Austria

Netherlands

Germany

Denmark

Products:

• Owner occupied commercial

• Renovations and refurbishments

loans

Asset Sectors:

Mixed use properties

Hotels

Commercial investments

Care Homes

Residential investments

Interest rate: 1% per month

Minimum loan: €5 Million

Fees: 2%

Maximum loan: €20 Million

Loan to value: 65% to 70%

Please note: In France, during any renovation works, the asset (hotel etc) needs to be empty

because of the insolvency laws in France

This fund operates across a wide range of geographical jurisdictions and asset sectors. They have

a common-sense approach to underwriting, and they will consider ‘the story’ for the right sponsor

and the right project. They understand that a newly built asset or refurbished asset needs a

stabilisation period before serviceability can be demonstrated. The lender profile is as follows:

They have offices in:

Frankfurt

New York

Singapore

London

Preferred jurisdictions include:

Asia to include Mauritius

Europe (as far east as Poland)

Australia

UK

USA

Preferred Asset sectors:

Residential portfolios

Hotels

Logistics

Student accommodation

Minimum advance: £35 Million

Maximum advance: £300 Million

Maximum loan to value: 65% (OMV)

Interest rate: Local base rate +2%

Purpose of Loan:

Development exit to retain

Acquisition

Restructure

At the moment this fund will not provide development finance.

With reference to hotel funding, they prefer the operator to sign a hotel management agreement

instead of a lease.

In summary, this is a real estate fund that understands property and has a very wide jurisdiction

reach.

This Pan European Fund provides a commercial mortgage facility for a variety of clients secured

upon a variety of assets across a variety of jurisdictions.

Geographical range

USA

Asset Sectors

Hotels

Retail

Residential Portfolios

All of Europe as far east as Poland

All of the UK

Business parks

Commercial investment

Logistics

Student Accommodation10

Maximum Loan- £300 Million

Interest Rate-

• Bank of England Base Rate + 2%

• Euribor + 2%

Maximum term- 7 years

Maximum loan to value - 65% of the GDV open market value

Ideal clients- Property investors wishing to acquire or refinance

Minimum Loan- £35 Million

Property developers wishing to retain the asset

A specialist lender providing:

• Senior debt

• Mezzanine

• Stabilisation term loans once the project is completed.

Geographical areas are:

• UK

• Europe

Asset Sectors:

• Student accommodation

• Build to rent

• Co Living

Please note, as an office we can also arrange in certain countries equity finance to support the

above.

I have a long-term commercial mortgage lender who will provide the facility below.

Geographically

Europe UK USA

Asset Sectors

Retail

Logistics

Offices

Hotels

Business Parks

Student Accommodation

Residential Portfolios

Loan size - £35m to £300m (They fund in local currency and an appropriate base rate)

Loan Terms - 7 years

Interest rate of Base rate +2%

65% of the Open Market Valuation

We continue to expand our range in the USA.

Whilst we can call upon major funds for support concerning requirements for mezzanine and

equity with ticket sizes of $50 Million upwards, it is very important to also provide the SME

market with support. Subsequently, I can outline the following profile of a fund with which we

now work:

Source of funding- A single family office

Investment size- $2 Million to $10 Million

Geographically- USA

Term- 1 to 5 years

Produce offering- Mezzanine and Preferred equity.

Preferred asset sector- Multifamily residential opportunities and hotels

The asset needs to be generating income.

The returns required- 12% to 20%.

When will they invest:

Where a client is short in the capital stack on an acquisition

When a sponsor needs to de leverage senior debt to avoid breaching senior debt covenants.

Distressed situations whereby a capital injection is required.

Recent case studies

A hotelier wanted to buy two hotels. One was a Hilton flag and the other was an IHG Flag

A local bank provided 70% of the purchase price

The sponsor input $4 Million

The shortfall of $4 Million was covered by the fund by way of a mezzanine facility charged at

12% with an exit ‘kicker’ of 8%.

The acquisition completed.

The hotelier was over-leveraged due to 4 new hotels being constructed. He was suffering huge

cost overruns. The new builds look to be ‘under water’ before they even open. The hotelier was

facing bankruptcy. Fortunately, the hotelier had a group of four trading hotels which have

equity. The solution was provided by the fund who bought the four trading hotels and leased

them back to the hotelier with a ‘buy back’ option

A well-capitalised fund that offers the following facility:

Geographically: Denmark, Sweden Finland

Product: Residential development. Both out of the ground and repositioning an asset.

Asset sectors: Mainly residential, including student accommodation, build to rent, build to

sell. Also, logistics/warehouses

Minimum loan: €5 Million

Maximum loan: €50 Million

Maximum loan to value: 75% of the gross development value pre- finance costs12

Term: 15 to 30 months

Interest rate: 10% coupon

Fees: 2% in and 1% exit

Developer experience: Must have built out at least five projects. Contractor strength must be

good.

I am now working with a private equity fund with the following profile:

€3.5bn Assets Under Management

Geographical preference is Cyprus, Greece, and Italy

Products available are Preferred Equity and Mezzanine Finance

All Asset sectors are acceptable i.e., hotels, residential, commercial

Minimum advance is €10m

There is no maximum advance

On Mezzanine, the maximum loan to cost advance is 85%

The interest rate on mezzanine is 16%

On the Preferred Equity Product, the required return is 1.5 times the money invested

The client/developer must have 10% of the project costs as "skin in the game"

The fund will co invest with other investors in a project

The fund will help to arrange local bank finance for the project to help the client.

A major investment fund whose profile is as follows:

Geographically - Greece and Cyprus.

Asset sectors - Logistics, Hotels, Office blocks to upgrade and rent out

Minimum investment is €5m

Maximum investment is €50million

They like to co invest with a developer on a forward purchase basis whereby they retain the

asset long term.

I am now working with an investment bank in New York that offers funding from $25m to

$5bn. They cover all asset sectors except oil and gas.

Real estate is a very good sector for them.

Geographically, they cover USA, Canada, Western Europe, Middle East, Asia, and

Australia. They will provide debt, mezzanine, and equity.

I have a "softer" private equity house that offers first charge funding from £15m to £40m at 10%

across the "beer drinking" countries of Western Europe.

They take a 10% or 20% share in the business.

They are a "patient" investor in that they allow the management team to dictate the exit strategy

and allow interim pay offs to the fund.

They will:

• Allow a principal to take cash out of the business on day 1

• Encourage acquisition and expansion

• The asset sectors that they invest in are general but "no" to property development.

• Invest in the tech sector, recruitment, hospitality, healthcare, service industry etc

A new fund is offering the following.

Israeli Property Loans

Loan Size: Up to £2,000,000

Max LTV: 50% of valuation

Rate: 8-12%

Term: Up to 3 years

Targeting individuals not domiciled in Israel, our loans are secured on Israeli property with a

personal guarantee and are suitable for second homes or similar investments. The loan is

executed under UK jurisdiction, with the charge on the Israeli property being the only aspect

occurring outside the UK. Execution time is up to 6 weeks