Refinancing of a residential portfolio 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 substantial residential portfolio. The existing financing was still in place but was not optimally aligned with the portfolio's current position. Asset Partners therefore organized a competitive process in which the financing requirement was divided into two workstreams: long-term investment financing and separate construction financing for the remaining work at one of the properties.

For long-term investment financing, Deutsche Bank was selected because it offered 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 German bank’s low cost of capital and the flexibility of an alternative financier during the construction phase. In addition, the required equity contribution was significantly reduced through appropriate advance financing.

Result

• Combination of German investment financing and alternative construction financing
• Substantial reduction in the equity contribution
• Low long-term financing costs
• Clear structure: financing aligned with both the project and investment phases