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✅ Case Study: Tailored Real Estate Financing Solution for a PrestaFlex Client
At PrestaFlex, we are committed to crafting financing solutions that precisely match our clients’ needs—even for the most complex, ambitious projects. Below is a recent example demonstrating how we tackled a major financial challenge.
Background: A Large-Scale Real Estate Project
Our client, an EU citizen residing in Switzerland and an experienced finance professional, sought to convert an old villa into a state-of-the-art luxury residence.
- Starting Point:
- Property acquired: Existing villa on over 1,000 m² of land
- Outstanding financing: CHF 3,500,000 with a Swiss private bank, first-lien mortgage at 2.5%
- Project Goals:
- Demolish the old villa and build a new luxury home
- Estimated construction cost: CHF 4,500,000
- Additional funding requested: CHF 5,000,000 in a second-lien mortgage at 7% p.a., plus fees
Client Challenges
The client quickly realized that the high-rate second-lien loan would significantly inflate total project costs. Key obstacles included:
- High interest expense from the 7% second-lien facility.
- Administrative complexity: Banks typically hesitate to finance projects still under construction.
- Compliance hurdles: Internal approval processes slowed decisions on large sums.
PrestaFlex’s Solution
Mandated to find a more advantageous, bespoke financing package, we:
- Conducted a thorough analysis of the client’s financial situation.
- Leveraged our network to source competing offers from private banks.
- Negotiated a consolidated, streamlined deal with superior terms.
Final Proposal:
- Total financing: CHF 10,000,000
- Consolidation: Roll-up of the CHF 3.5 M first-lien and CHF 5 M second-lien into one facility
- Interest rate: 2.2% p.a. over 5 years, with interest-only payments (no principal amortization) during the term
- Condition: Transfer of the client’s securities portfolio to the new lender
- Status of works: Approved despite construction being only 80% complete
Outcomes Achieved
Thanks to this structure, the client was able to:
- Replace the expensive 7% second-lien loan with a single 2.2% facility, realizing significant interest savings.
- Simplify debt management—one payment schedule, no amortization for five years.
- Strengthen overall financial health and complete the villa project with confidence.
Today, the villa’s market value has risen substantially into the tens of millions of francs.
Compliance Considerations
Although the terms were attractive, the deal faced multiple compliance checkpoints:
- Detailed asset and income verifications.
- Extended processing timelines due to the large transaction size.
- Rigorous anti-money-laundering and source-of-funds reviews.
Through close collaboration and the client’s patience, we secured final approval.
Why This Project Succeeded
This case highlights PrestaFlex’s ability to:
- Negotiate markedly better terms under complex circumstances.
- Consolidate multiple credits into one streamlined loan for easier administration.
- Optimize total project cost by securing a substantially lower interest rate.
- Guide clients smoothly through demanding compliance processes.
PrestaFlex: Your Trusted Partner
Whether you’re an investor, owner of high-value real estate, or a professional seeking custom financing solutions, PrestaFlex is here to help you:
- Reduce financing costs
- Enhance credit terms
- Simplify your debt structure
- Find solutions even in the most challenging scenarios
Want to learn more? Contact PrestaFlex today!
We’ll work tirelessly to craft the perfect financing solution for your project. 😊
✅ Case Study: Tailored Real Estate Financing Solution for a PrestaFlex Client
At PrestaFlex, we are committed to crafting financing solutions that precisely match our clients’ needs—even for the most complex, ambitious projects. Below is a recent example demonstrating how we tackled a major financial challenge.
Background: A Large-Scale Real Estate Project
Our client, an EU citizen residing in Switzerland and an experienced finance professional, sought to convert an old villa into a state-of-the-art luxury residence.
- Starting Point:
- Property acquired: Existing villa on over 1,000 m² of land
- Outstanding financing: CHF 3,500,000 with a Swiss private bank, first-lien mortgage at 2.5%
- Project Goals:
- Demolish the old villa and build a new luxury home
- Estimated construction cost: CHF 4,500,000
- Additional funding requested: CHF 5,000,000 in a second-lien mortgage at 7% p.a., plus fees
Client Challenges
The client quickly realized that the high-rate second-lien loan would significantly inflate total project costs. Key obstacles included:
- High interest expense from the 7% second-lien facility.
- Administrative complexity: Banks typically hesitate to finance projects still under construction.
- Compliance hurdles: Internal approval processes slowed decisions on large sums.
PrestaFlex’s Solution
Mandated to find a more advantageous, bespoke financing package, we:
- Conducted a thorough analysis of the client’s financial situation.
- Leveraged our network to source competing offers from private banks.
- Negotiated a consolidated, streamlined deal with superior terms.
Final Proposal:
- Total financing: CHF 10,000,000
- Consolidation: Roll-up of the CHF 3.5 M first-lien and CHF 5 M second-lien into one facility
- Interest rate: 2.2% p.a. over 5 years, with interest-only payments (no principal amortization) during the term
- Condition: Transfer of the client’s securities portfolio to the new lender
- Status of works: Approved despite construction being only 80% complete
Outcomes Achieved
Thanks to this structure, the client was able to:
- Replace the expensive 7% second-lien loan with a single 2.2% facility, realizing significant interest savings.
- Simplify debt management—one payment schedule, no amortization for five years.
- Strengthen overall financial health and complete the villa project with confidence.
Today, the villa’s market value has risen substantially into the tens of millions of francs.
Compliance Considerations
Although the terms were attractive, the deal faced multiple compliance checkpoints:
- Detailed asset and income verifications.
- Extended processing timelines due to the large transaction size.
- Rigorous anti-money-laundering and source-of-funds reviews.
Through close collaboration and the client’s patience, we secured final approval.
Why This Project Succeeded
This case highlights PrestaFlex’s ability to:
- Negotiate markedly better terms under complex circumstances.
- Consolidate multiple credits into one streamlined loan for easier administration.
- Optimize total project cost by securing a substantially lower interest rate.
- Guide clients smoothly through demanding compliance processes.
PrestaFlex: Your Trusted Partner
Whether you’re an investor, owner of high-value real estate, or a professional seeking custom financing solutions, PrestaFlex is here to help you:
- Reduce financing costs
- Enhance credit terms
- Simplify your debt structure
- Find solutions even in the most challenging scenarios
Want to learn more? Contact PrestaFlex today!
We’ll work tirelessly to craft the perfect financing solution for your project. 😊
Financing growth