BOOSTING PROPERTY SALES: CASE STUDY 2

Boosting estate agent’s sales

by offering the right finance solutions

Case study 2: 
Commercial real estate transaction structured as a sale lease back

An estate agent which we collaborate with, introduced us to a family office of hoteliers who wanted to raise finance on a 4 stars hotel located in Spain as they required funds to acquire another hotel which was a strategic and opportunistic investment.

Due to their existing financial commitments, this family office did not meet traditional banks affordability ratios and their finance application was turned down.

Based on the hotel’s excellent location and recurrent operating profits over the years, we structured a sale lease back transaction through an international REIT (real estate investment trust).

We raised €34.5M for the family office, that is 100% LTV, while they kept the management of the business and therefore the operating profits, by transferring their hotel’s ownership to the REIT, who then leased back the property to them for 20 years with a repurchase option at the end of the lease term.

Financial North offers you and your customers a myriad of financial solutions, offering the best solutions for making your deals happen.

Please contact us if you would like to discuss a deal that requires finance.

BOOSTING PROPERTY SALES: CASE STUDY 1

Case study: Italian cash buyers use international finance offered by Financial North to increase their purchase power & to optimise their Spanish Wealth Tax 

The €2.8M finance facility allowed these buyers to increase their budget from €2.5M to a €4M which resulted in a villa purchase in Es Cubells, Ibiza.

The mortgage also keeps their net assets in Spain down to a minimum in order to optimise their Spanish Wealth Tax, that would kick in would be reached fairly soon without careful planning. The estimated tax savings would be €36,546 per year for the next 5 years.

Additionally, they were planning other investments in their own business in the near future and by leveraging their property acquisition in Ibiza, they did not have to take more expensive finance back in their home country. The clients opted for a variable interest route at Euribor + 1.25% for 20 years.

With Spanish mortgage rates so low and for the optimisation of the Spanish Wealth Tax, even those with enough cash to be able to buy outright are using finance to purchase their properties.

By offering finance, it resulted in a much higher sale for the estate agent but also on tax and finance efficient solution for the satisfied customers.

Please do not hesitate to contact us if you have a case you would like to discuss or introduce.