Real Estate Financing up to CHF/EUR 50 Million: How to Finance a Project or Unlock Liquidity from Your Existing Property Portfolio
Property development, acquisitions, refinancing, cash-out, second-ranking financing, bridge loans, senior debt or mezzanine: real estate can be much more than capital tied up in an asset. Properly structured, it can become a powerful source of liquidity and growth capital.
Between traditional bank lending criteria and the actual financing requirements of developers, investors and entrepreneurs, there is a substantial market for alternative and structured real estate financing solutions.
PrestaFlex supports clients in Switzerland and across Europe in identifying and structuring financing solutions that may, depending on the transaction and the financial partner’s criteria, reach CHF/EUR 50 million or the equivalent in GBP/USD, typically for periods ranging from 6 to 36 months, and in certain cases up to 60 months.
How Can You Unlock Liquidity from an Existing Property or Real Estate Portfolio?
An investor may own millions in real estate assets while lacking the immediate liquidity required to pursue the next acquisition or development opportunity.
A cash-out refinancing can provide a solution.
Where the property value, existing indebtedness, cash flow and borrower profile allow it, an existing asset can potentially be refinanced at a higher amount, thereby releasing part of the equity accumulated in the property without necessarily having to sell it.
Consider a simplified example: a real estate portfolio is valued at CHF 30 million and carries CHF 12 million of existing debt. Depending on the asset quality, income, LTV, available collateral and lender requirements, a new financing structure could potentially release additional liquidity.
The resulting capital could be used for a new acquisition, equity contribution to another development, CAPEX, corporate growth or another investment opportunity.
Senior Loan, Second-Ranking Financing, Junior Debt or Mezzanine?
A real estate transaction does not necessarily have to be financed by a single lender or a single layer of debt.
A senior loan generally benefits from the strongest position in the security structure and therefore represents the lowest-risk debt layer.
Where senior debt does not cover the entire capital requirement, additional financing may be considered.
Second-ranking financing can potentially unlock additional value from a property that is already mortgaged.
Junior debt accepts a subordinated position behind the senior lender in exchange for a return reflecting the additional risk.
Mezzanine financing sits between senior debt and equity and can be particularly relevant for developers and investors seeking to complete their capital stack without immediately contributing substantially more equity.
The right question is therefore not simply:
“Which bank will finance my property?”
It should be:
“Which combination of senior debt, junior financing, collateral and equity provides the most appropriate and sustainable capital structure for this transaction?”
Bridge Loans and Transactional Financing: When Timing Matters
Some real estate opportunities require fast execution.
Examples include an acquisition with a short closing deadline, a loan approaching maturity, purchasing a new property before selling another asset, refinancing pending a bank facility, temporary liquidity requirements or financing works before a disposal.
A real estate bridge loan can address these situations.
Bridge financing is generally short to medium term and relies heavily on the quality of the asset, LTV, available collateral, borrower profile and, critically, a credible exit strategy.
The exit may consist of a property sale, long-term bank refinancing, completion of a development, incoming investor capital or stabilised rental cash flow.
Financing Property Developers, Real Estate Developers and Construction Companies
Real estate financing extends far beyond purchasing completed properties.
Financing requirements may include:
- land and land-bank financing;
- acquisition of development sites;
- development and permitting costs;
- property development and construction financing;
- heavy renovation and repositioning;
- working capital for developers or construction companies;
- refinancing of completed but unsold inventory;
- bridge financing between different development phases;
- opportunistic property acquisitions;
- refinancing existing debt;
- growth and expansion capital.
A development site with significant future potential may also have substantial financing value before the final building permit is obtained.
However, lenders will normally analyse the current zoning, building rights, permitting probability, timetable, development costs and present-day collateral value rather than relying solely on a theoretical future value after development.
Financing Villas, Income-Producing Properties, Hotels and Commercial Real Estate
Different real estate assets require different financing approaches.
PrestaFlex can analyse transactions involving luxury villas, residential investment properties, real estate portfolios, hotels, commercial properties, offices, retail assets, logistics facilities, industrial properties, development land and properties requiring repositioning.
For an income-producing property, lenders will typically examine rental income, vacancy, NOI, DSCR, LTV and tenant quality.
For hotel financing, additional considerations may include occupancy, ADR, RevPAR, EBITDA, operator quality, CAPEX requirements, location and underlying real estate value.
For a luxury villa or prime residential property, financing may depend more heavily on market value, location liquidity, borrower net worth, existing indebtedness and the proposed repayment strategy.
Refinancing a Property to Finance the Next Project
One of the most powerful financing strategies for experienced real estate investors is to recycle equity.
Instead of selling a successful property to obtain capital, an investor may refinance it and extract part of the equity created through appreciation, amortisation or successful development.
This liquidity can then become the equity contribution for the next transaction.
A portfolio can therefore potentially support a cycle of:
Acquire → Develop → Stabilise → Refinance → Cash-Out → Reinvest
For experienced investors and developers, intelligent use of the balance sheet can be just as important as identifying the next property.
Share Deals, Joint Ventures, Club Deals and Profit Sharing
Not every real estate transaction should be financed exclusively through debt.
For larger developments or acquisitions, bringing in an equity investor or strategic partner may be more appropriate.
An investor may acquire shares in the company or SPV holding the property through a share deal.
Several investors may participate through a club deal.
A developer can establish a joint venture with a capital partner, while certain transactions can be structured using profit-sharing arrangements, aligning the developer’s expertise with the investor’s capital.
More sophisticated transactions can combine:
Senior Debt + Junior/Mezzanine Debt + Equity
The objective is to build the appropriate capital stack around the economics, risks and expected return of the project.
What Does a Real Estate Lender Actually Analyse?
An attractive property alone is not enough.
A bank, private lender, family office or private debt fund will generally assess factors including:
current market value, LTV, LTC, mortgage ranking, sponsor equity, rental or operating cash flow, interest coverage, permits, construction costs, developer track record, guarantees, legal structure, taxation, project timetable and exit strategy.
The source of repayment is particularly important.
A lender needs to understand not only why the borrower needs the money, but also how and when the financing will be repaid.
At PrestaFlex, we therefore approach transactions with a methodology comparable to a credit or investment committee.
The objective is not simply to forward a financing request to multiple lenders. It is to understand the transaction, identify its strengths and risks, structure the information and documentation, and approach financial partners whose investment criteria genuinely correspond to the opportunity.
Why PrestaFlex for Real Estate Financing?
PrestaFlex has developed substantial experience in the search, structuring and coordination of real estate and alternative financing solutions.
We work with a network of banks, private lenders, private debt funds, family offices, financial institutions and investors in Switzerland and across Europe.
Our scope includes both conventional transactions and more complex financing situations involving:
real estate refinancing, cash-out, second-ranking financing, bridge loans, senior and junior debt, mezzanine, asset-backed financing, private debt, equity and special situations.
Our role is particularly valuable when a transaction cannot be evaluated solely through standard banking criteria and requires a deeper understanding of the asset, sponsor, capital structure, collateral and exit strategy.
PrestaFlex acts as a financing intermediary, arranger, structuring advisor and coordinator. PrestaFlex is not a bank or lender and does not guarantee that financing or investment will be obtained. Final credit and investment decisions remain exclusively with the relevant financial partners and investors.
Have Real Estate Value but Need Liquidity?
Selling the asset is not always the only solution.
A property, villa, development site or real estate portfolio may potentially be used to raise liquidity, refinance existing debt, finance an acquisition or provide the capital required for a new development project.
Indicative financing requirements: CHF/EUR 50,000 to 50 million, or equivalent in GBP/USD.
Potential terms: 6–36 months, and in selected transactions up to 60 months.
PrestaFlex analyses the transaction, assets, borrower, collateral and exit strategy before identifying and approaching potentially suitable financing or investment partners.
Are you a property developer, real estate investor, broker, architect, fiduciary, lawyer, consultant or real estate advisor?
You can also introduce your clients’ financing requirements to PrestaFlex. Our objective is to combine your relationship and market expertise with our financing network, structuring capabilities and experience in alternative capital solutions.
