Successful acquisition of several historical buildings with redevelopment potential, in Amsterdam and Utrecht, with the help of a €16.9 million bridge loan.
Our client, a large Dutch investment group, was looking to acquire 3 historical buildings in two of the major cities in The Netherlands. With limited rental income and the requirement to include addittional funding in order to implement their capex and letting program for the next 1-2 years, the financing proved challenging.
PolarReal was able to arrange a loan in 2 tranches, leading to the successful acquisition of the properties in Amsterdam and Utrecht. The assets were (partially) vacant on acquisition and had considerable value-add potential. The loan was put in place for a period of 18 months with additional extension options.
A flexible bridge loan
The best solution proved to be a bridge loan for the acquisition, which included funding for capex and interest during the capex period. With flexible extension options, long term refinancing could then be put in place at the right time: after capex has been completed and long-term new leases put in place.
Mostly vacant properties, Capex, Several sellers
Large Dutch investment group
European debt fund