Demand for Commercial Property Funding Remains High

New Beginning Funding’s ongoing market analysis shows the high demand for Commercial Property borrowing, not being matched by the available funding options. The trend of overseas funds continuing to seek liquidation or refinancing of distressed portfolios is continuing, however, we are also seeing a marked increase in the number of commercial borrowers seeking funding for, regular, commercial property acquisition.

These trends coupled with the continuing scarcity of pillar Bank funding options, in the Commercial property funding sector, means  commercial loans remain difficult to source, especially in the segment of the market below €3m, an area where, traditionally, banks would be the primary lender. The available non-bank funding options are still, mainly, targeting deals of €1m or higher and in larger urban locations.

At New Beginning Funding our Funding facilitation services offers all commercial borrowers a bespoke service which sources the best funding options, from across the market,  with transactions individually structured to offer most value to prospective borrowers.

New Beginning can source funding commitments, based on the specific needs of the borrower, in a matter of days. This means that clients avoid being forced to sell their properties, and with the assistance of New Beginning Funding, design individual loan structures which are sustainable over the longer term.

New Beginning Funding is looking to assist individuals and SMEs in sourcing a range of funding options, including refinancing, to enable settlement of stressed exposures. We can source a broad range of funding options, including Bridging and Mezzanine facilities, development financing and larger commercial facilities.

We encourage commercial clients with traditional or alternative commercial real estate funding requirements to contact us.

Our typical traditional funding transaction structure for income producing assets is based on:

  • 5 year term finance, with capital and interest payments calculated using a 20 year repayment profile
  • Up to 75% LTV, subject to rental income

The minimum loan size is €1,000,000- [we will look at deals below €1m but have found that the options available at this level are very scarce]

Many of our clients have agreed or are about to agree deals with funds who have acquired their loans.

Alternative funding transactions, by their nature, will be less formulaic and we encourage commercial clients to discuss their transactions with us to see if we can assist.

New Beginning Funding does not underwrite, but has partnered with providers of non-bank financing options, and we currently operate as an intermediary.

If you have a distressed loan and want to avoid the sale of the underlying property assets then refinance may be a perfect option for you. Often the refinance can be done through a new corporate entity or SPV meaning that the underlying property can be protected from any other exposure.

You can email me at  john.ryan@newbeginning.ie This email address is being protected from spambots. You need JavaScript enabled to view it.  or call me on 01-5240000 to discuss options that might be of help to you.

 

 

Our Funding Facilitation Service

New Beginning Funding is experiencing growing interest in our funding facilitation service from our expanding base of commercial borrowers.

The demand, at present, within the Irish market, from companies and individuals seeking re-finance facilities for commercial property transactions, is growing and the variety of these deals, in terms of timeframes, size and nature of funding being sought is very broad.

The trend of overseas funds seeking immediate liquidation or refinancing of distressed portfolios continues. We believe that this is where our funding option offers most value to prospective borrowers. We can source funding commitments in a matter of days based on the specific needs of the borrower. This means that clients avoid having to sell their properties and New Beginning Funding builds new loan structures which are sustainable over the longer term.

We currently has a pipeline of €21m in deals which will drawdown in the coming months.

We are looking to assist individuals and SMEs in sourcing a range of funding options, including refinancing, to enable settlement of stressed exposures.

Last month we announced, as part of our ongoing review of the commercial debt market trends and feedback from our commercial client base, the broadening of our range of funding options to include Bridging and Mezzanine facilities, development financing and larger commercial facilities. As part of this process we expect to see our first commercial bridging transaction close in the next week.

Our typical traditional funding transaction structure for income producing assets is based on:
5 year term finance, with capital and interest payments calculated using a 20 year repayment profile
Up to 75% LTV, subject to rental income

The minimum loan size is €500,000. Many of our clients have agreed or are about to agree deals with funds who have acquired their loans.

Alternative funding transactions, by their nature will be less formulaic and we encourage commercial clients to discuss their transactions with us to see if we can assist.

New Beginning Funding does not underwrite, but has partnered with providers of non-bank financing options to this market segment, and we currently operate as an intermediary.

If you have a distressed loan and want to avoid the sale of the underlying property assets then refinance may be a perfect option for you. Often the refinance can be done through a new corporate entity or SPV meaning that the underlying property can be protected from any other exposure.

You can email me at john.ryan@newbeginning.ie or call me on 01-5240000 to discuss options that might be of help to you.