REAL ESTATE FINANCE FAQ
Practical answers to common questions about real estate debt, development finance, bridge finance, structured capital and cross-border financing in the Netherlands, Spain and wider European markets.
General
A real estate finance advisor analyses the transaction, capital requirement, leverage, sponsor profile, cash flow and exit strategy, then structures the financing approach and identifies lenders or investors whose mandate fits the deal. The advisor can also coordinate lender engagement, compare terms, support negotiation, due diligence and documentation through closing.
KSCG acts as an independent real estate finance advisor and arranger. KSCG structures transactions and approaches suitable banks, debt funds, private credit providers, family capital and equity investors. KSCG does not present itself as the lender or investor unless expressly stated for a specific transaction.
A lender-ready assessment typically requires information on the property, ownership structure, sponsor and track record, financing requirement, existing debt, valuation, business plan, rental income or sales assumptions, development budget where relevant, planning or permits, sponsor equity and the proposed repayment or exit strategy.
Netherlands
Dutch lenders generally assess the underlying property and location, current and projected value, loan-to-value or loan-to-cost, rental cash flow and debt service capacity, sponsor strength, permits and capex where relevant, security structure and the credibility of the exit. The weighting differs by lender, asset class and transaction type.
Development finance is typically assessed on the basis of land or acquisition cost, construction budget, contingencies, permits, sponsor equity, contractor and execution risk, projected end value and the repayment route. Lenders may also require monitoring of construction progress and conditions before each drawdown.
Yes. Refinancing can be considered where the property or portfolio supports an acceptable valuation, rental profile, leverage and debt service capacity. The appropriate structure depends on the asset class, tenant profile, remaining lease terms, current debt, required proceeds and the intended holding or exit strategy.
Spain
Spanish real estate lenders commonly focus on the project or asset, location, legal and planning status, sponsor equity, development budget where applicable, current and projected value, leverage, security package and exit. For development transactions, licences, construction timing and sales or stabilisation assumptions can be particularly important.
International sponsors can obtain financing in Spain when the transaction, ownership structure and security package are acceptable to the lender. Lenders will typically review the sponsor track record, equity contribution, local project structure, tax and legal setup, execution capability and the proposed repayment route.
Not always. The importance of pre-sales depends on the lender, location, product, stage of development, leverage and sponsor profile. Some residential development lenders may place significant weight on pre-sales, while other capital providers may accept different risk mitigants or a different capital structure.
Europe
Cross-border real estate finance involves capital providers financing a transaction outside their home market or sponsors raising capital from lenders and investors based in other jurisdictions. The capital may be international, but security, documentation, tax, valuation and execution requirements remain strongly influenced by the local market.
Debt funds and private credit providers can be relevant where a transaction requires faster execution, higher structural flexibility, development exposure, transitional capital or a risk profile that does not fit conventional bank underwriting. The trade-off can include different pricing, fees, covenants, security requirements and exit expectations.
KSCG screens the capital universe against the geography, asset class, ticket size, leverage requirement, development or investment stage, timing, sponsor profile, security package and exit strategy. The objective is to approach providers with a genuine mandate for the transaction rather than distribute the opportunity indiscriminately.
KSCG can review the transaction, financing requirement and likely lender universe before a formal market approach.
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