New Beginning Funding continues to experience a high level of demand for our funding facilitation service among commercial borrowers. Demand for funding for commercial property transactions continues to outstrip supply, with commercial banks continuing to be noticeable in their absence at the sub €3m segment of the market.
The non-bank funding options currently available seem to be targeting deals of €1m and higher in larger urban locations.
As previously highlighted, the trend of overseas funds seeking immediate liquidation or refinancing of distressed portfolios continues. New Beginning believes 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.
In May, as part of our ongoing review of the commercial debt market trends and feedback from our commercial client base, we announced the broadening of our range of funding options to include 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 generally €1,000,000.
We will consider 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.
By their nature alternative funding transactions are less formulaic and we encourage commercial clients to discuss their transactions with us to see if we can assist.
We do not underwrite ourselves, but have partnered with providers of non-bank funding.
If you have a distressed loan and want to avoid the sale of the underlying property assets then refinance may be an 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.