Real estate debt FAQs

Our Sterling loans range in size between £20m and £250m, but we may consider larger applications, particularly for portfolios of assets.

Our Euro loans are generally of €40m or more and the maximum size is very dependent on the specific transactions with some loans over €200m.

Our Core lending is focused primarily on fixed rate lending and our high yield lending can either be floating or fixed.

For Core lending in Sterling we can offer terms for fixed rate loans between 3 and 25 years with generally most appetite between 7 and 15 year. Core lending in Euro’s is generally focused on 5 to 15 years although other tenors can be considered.

For High yield lending, loans tend to range between 3 and 5 years.

Yes, we actively lend on developments across Europe.

The arrangement will depend on the complexity of the loan and the number of properties involved in the financing. For development financing, commitment and exit fees may be payable.

External fees, including the costs of due diligence (including legal and valuation fees) will be payable by the borrower. Generally we will use a third party Facility and Security Agent, costs of which will be referenced in the term sheet and will be payable by the borrower.

In addition to the capital and any outstanding interest, an early redemption fee may be payable. This will be outlined in any term sheet we provide.

We expect our loan to be repaid in full. If you wish us to renew the loan facility, then you should contact us at an early stage - at least six months before maturity - so that any new loan is ready to take effect from the expiry of the existing loan.

Cross charging is a legal process whereby loans are linked together to give the lender wider powers of recourse. So if a shortfall occurred on the sale of one property, it could be made up from surpluses on other loans within the cross charge. Cross charging can be a useful underwriting tool, in that a shortfall in one loan’s cash flow may be supplemented by surplus rent from a property in another loan within the cross charge.

Need more information?

Contact the real estate debt team for loans of £15m or more.

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Real estate debt

Our breadth of lending capabilities enables us to meet a wide range of investor needs, covering short- to long-dated, fixed or floating-rate secured on UK real estate.