Unlocking value-add redevelopment potential prior to the acquisition, with a €18 million bridge loan for a mixed use property.
A well-established investor and developer was acquiring a mixed use asset with value-add potential in the center of a main regional city. Relying on the local and national network, they were able to identify potential future tenants early for the converted parts of the asset. The aim was to secure financing that already recognizes this added value on acquisition.
PolarReal was engaged to source a bridge loan, which we successfully arranged with a European debt fund. The bridge loan had a term of 18 months plus extension options and enabled our client to fund part of the acquisition costs as well as funding the entire capex budget required for improving the building and partially converting its office areas.
A bridge loan helping to unlock value-add potential
PolarReal was able to source funding from a real estate debt fund with a European focus. The bridge loan enabled the partial funding of the acquisition and allowed for a capex reserve to fund the necessary investments in the next 1-2 years.
To further assist our client, we provide quarterly loan reporting to the lender on their behalf.
Retail, Office, Residential
High leverage, capex funding
Regional investor & developer
European debt fund