Refinancing – residential portfolio across the Netherlands

Background

The portfolio comprised five residential complexes that had recently been redeveloped. The total portfolio amounted to approximately 23,000 sq m (GFA), across nearly 570 residential units.

The client was looking for an optimal refinancing structure for a sizeable residential portfolio. The existing financing was still in place, but it was no longer fully suited to the portfolio’s current status. Asset Partners therefore ran a competitive process, splitting the financing requirement into two workstreams: a long-term investment facility and a separate construction facility for the remaining works on one of the assets.

For the long-term investment financing, a German bank was selected, offering highly attractive terms but not providing construction finance. To address this, an additional process was initiated with a specialised alternative lender.

To address this, an additional process was initiated with a specialised alternative lender. This combination enabled the client to benefit from the low cost of capital offered by a German bank, while retaining the flexibility of an alternative lender during the construction phase. In addition, the required equity contribution was significantly reduced through an appropriate level of leverage.

Result

• Combination of long-term German investment financing and alternative construction finance
• Significant reduction in the required equity contribution
• Low long-term cost of capital
• Clear structure: financing tailored to both the construction phase and the investment phase