REAL ESTATE BACKED FINANCE

Property holding company finance

Finance new investments or release liquidity against your property holding company’s assets.

SITUATION

When it makes sense.

  1. You want to buy a new property using those you already own as security.

  2. Rental income covers the interest, but your bank will not provide the amount you need.

  3. You want to release capital from an asset without selling it.

DETAILS

What you should understand.

For property-owning companies seeking to invest, refinance or release capital without selling. Rental income, an asset sale or refinancing may support repayment.

1

THE PROPERTY

The collateral

We assess the company’s property as a portfolio: assets, ownership, charges, occupancy and rental income. A let property with recurring income differs from a vacant asset, one awaiting refurbishment or one prepared for sale.

We review the property offered as collateral and how the transaction would affect the remaining portfolio. Owning several assets does not mean all must automatically be pledged.

2

THE EXIT

Repayment

Rents may contribute to repayment but are assessed alongside expenses, lease expiries and vacancy periods. If the exit is a sale or refinancing, the asset, timing and net value after charges are identified.

Information that helps.

You can start without uploading documents. If this information is available, it may help us understand your project sooner.

  • Property schedule, estimated values and charges.
  • Leases, occupancy and rental income where available.
  • Use of funds and property offered as collateral.
  • Portfolio expenses and intended repayment source.

Common questions.

Does every property need to be let?

Not necessarily. Occupancy and rental income inform the assessment, alongside asset quality and a credible alternative exit.

Must I pledge every company property?

Not necessarily. The collateral needed for the transaction is assessed. Its scope is specified in the proposal and should be clear before signing.

Can a vacant property be considered?

Yes, with its current situation and intended plan explained. Without current rents, another payment source and a reasonable exit must be identified.

CASES AND PROJECTS

A financing solution for every project

FICTIONAL

Marina · Barcelona

Property holding companies

FICTIONAL

26 days to completion · simulated scenario

Fictional example of a property holding company refurbishing four homes for rental. Funding is backed by its residential portfolio, with an exit through rental income and longer-term financing.

Funding
320,000 €
Collateral value
800,000 €
Loan-to-value
40.0 %
Collateral
Company-owned residential portfolio
Exit
Rental income and long-term refinancing
Location
Barcelona

Area / capacity: 4 homes · 360 m²

View full case study Explore this finance option

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