Real estate company financing

Mortgage financing – Bridge loan of CHF 5’500’000 for a two-storey building in Geneva

At the beginning of October, PrestaFlex financed a real estate company through a commercial mortgage loan.

PrestaFlex was able to finance a real estate company with a commercial building through a 2nd rank commercial mortgage. Since the company had obtained a building permit and since the construction work was about to be completed, we found a solution with our financial partners very quickly.

Our client obtained the requested amount in only 1 month.

The first step in the financing process corresponds to the evaluation of the dossier and the interview. The structuring of the file is the next step. The end of the process is characterized by the payment. Each of these steps took 10 days, which made it possible to complete the financing in only 30 days in total.

What were the conditions for obtaining the bridging loan?

1.         Amount obtained CHF 5’500’000

2.         Annual interest rate = 4%

3.         Full repayment of the capital at the end of the loan contract

4.         Interest rate payable quarterly

5.         Collateral = two mortgage notes

6.         Small penalties for early repayment

7.         Finalization of loan agreement and disbursements within 30 business days

8.        Objective = to free up maximum cash flow for the company to enhance other projects

What were the benefits to the real estate company?

In addition to the speed of financing and the repayment conditions, the company benefited from the repurchase of an existing loan of CHF 3,000,000 from another banking institution with a more favorable interest rate. Also, all the administrative procedures were taken care of by PrestaFlex directly in collaboration with the notary, the financial company and a lawyer’s office, which was very much appreciated by the real estate company.

PrestaFlex has already financed a large number of executives with real estate companies.

Many executives with several real estate properties in different cantons turn to us. In most cases, they have difficulties in finding financing. It is true that they own valuable assets but are often short of cash. Thanks to the tailor-made solutions that PrestaFlex offers, it has been possible to help these companies to obtain the desired amount and thus to invest in other real estate projects.

Here is a list of examples for which we have financial solutions:

– Multi-unit buildings

– Mixed-use buildings (residential, commercial, office, etc.)

– Commercial, administrative or industrial buildings

– Hangars, warehouses…

– Agricultural holdings 

– Land (bare or with a construction)

– Apartments in property by floor (PPE)

– Offices arcades, etc…

– Garages, boxes, parking spaces, etc…

Written by : Münür Aslan, CEO & Founder of PrestaFlex and Arij Kamel, Marketing Trainee, Fribourg