€4.4 million senior loan to refinance existing debt on a residential portfolio near Rotterdam.
Our client has acquired and financed a residential portfolio just before the crisis in 2008, with the financing still in place and under the original conditions. Their goal was to refinance the loan and benefit from today’s more attractive interest rates. They were however coming out short on maximum loan amount and LTV due to the low residential rents on the portfolio (social housing) and the resulting low debt yield.
PolarReal assisted our client by providing analysis to funders that shows how actual portfolio income is boosted by ongoing asset sales. This allowed us to arrange refinancing on improved terms compared to the existing loans by capitalising on the increase in asset value and the more attractive financing conditions in today’s lending market.
New bank debt with reduced debt service and improved cash-flow
Through a Dutch bank, PolarReal arranged a new loan to replace the existing funding lines, thus significantly reducing debt service costs on this leased residential portfolio.
Through optimising the funding structure and reducing loan costs, the net cash-flow of the borrower was significantly improved. The loan took into account our client’s strategy to refurbish and sell individual units once they become vacant.
Low Debt-Yield, Energy-label upgrade
Dutch residential investor