Areas of Practice

Property Finance

All types, including mortgages; standby; development and investments for periods of up to thirty (30) years.


The general lending policy outlined herein, is subject to geographical location, and attempts to give some of the types of financial accommodation and facilities that may be provided.


The terms are given as a guide, and are therefore subject to change as dictated by the market conditions and lending portfolio requirements.


Overall flexibility can be provided by a combination of some of the various types of financing listed, and perhaps provide new avenues of financing for quality projects not necessarily falling within the perimeters outlined.


We accept loan applications of two and half million (€2,500,000) Euro upwards.


The period for this type of financing is generally governed by the terms of the permanent commitment loans, however, as a general rule, such financing extends up to a term of three years and on some occasions to five years. The rates of interest vary with the market conditions and amount involved, with the rate being charged at a percentage amount over the Eurodollar Interbank Rate.


Arrangement may be made for standing loans on all improved properties for as long as a five-year period. Occasionally such financing facilities can be extended to land transactions. This type of financing can also be in conjunction with a commitment for land purchase/leaseback and/or an intermediate term loan. Loan to value ratios for standing loans depend on the type of property, but would generally be in accord with the prevailing lending practice and portfolio requirements at that time, with land loans involving a maximum ratio of seventy percent with sixty percent being the norm.


Investment policies may include the purchase of land, subordinated to a first mortgage, at its appraised value to be leased back to the developer on a long term basis. An attractive feature of this facility is the Leasee’s option to repurchase the land at an early date, say ten years. Arrangements vary from case to case, but for example the repurchase price might be at an escalated factor or at the then appraised value whichever is the greater. It can also be provided for an option to repurchase in the event of the sale of the property to an unrelated third party. All land purchases involve improved or to be improved properties. Normally the loan on the improvements plus the purchase price of the land should not exceed eighty percent of the appraised value and/or net cash flow after mortgage service should be approximately one and one-half times rent coverage.


Arrangements may be made for the provision of Standby Commitments to provide for permanent financing. Such commitments are usually written and formulated upon terms that do not envisage that a drawdown and takeout would prove to be attractive to the borrower for any substantial period of time. Such commitments are widely utilised, however, to permit construction and interim financing on projects which it is inappropriate to arrange concurrently the ultimate permanent financing, specifically in connection with International developments involving foreign exchange transactions and regulations.