Refinancing of a residential portfolio spread across the Netherlands

Background

The collateral to be financed consisted of five recently redeveloped residential complexes. The total portfolio amounted to approximately 23,000 m² of gross floor area, comprising nearly 570 residential units.

The client was seeking an optimal refinancing structure for a large residential portfolio. The existing financing was still in effect but was not optimally aligned with the portfolio’s current status. Asset Partners therefore organized a competitive process, dividing the financing needs into two tracks: long-term investment financing and separate construction financing for the remaining work on one of the properties.

For long-term investment financing, a German bank was selected that offered very attractive terms but did not provide construction financing. To address this, a separate financing arrangement was set up with a specialized alternative financier.

Thanks to this combination, the client was able to benefit from both the low cost of capital offered by a German bank and the flexibility of an alternative financier during the construction phase. In addition, the required equity contribution was significantly reduced through appropriate advance financing.

Outcome

• Combination of German investment financing and alternative construction financing
• Significant reduction in the equity contribution
• Low long-term capital costs
• Clear structure: financing tailored to both the project and investment phases

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