Importance of an Exit Strategy and Property Development Finance

Importance of an Exit Strategy and Property Development Finance

There are several ways to arrange property development finance and several types of lenders in the market. What is common to them all is their need to understand and to have confidence in the way that they are going to be paid back. So, lenders will ask a number of questions at application stage about how this is going to be achieved and they will form an opinion on the credibility of the borrower’s strategy. That opinion is no less important than all the other aspects of the loan application and if the lender does not believe in the strategy, then the loan will not be forthcoming. By definition, if you are engaging in a property development, it is only going to last as long

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Bridging Loans For Spain

Bridging Loans For Spain

What Are Spain Bridging Loans? Bridging loans for Spain are a specialist kind of loan designed solely for shorter term usage to provide a temporary cash flow solution or ‘bridge’ before additional permanent finance becomes available. The method for obtaining a bridging loan is straightforward and really versatile with a more flexible set of criteria than is usually required by most high street banks and mortgage lenders. Like a mortgage, a bridging loan is secured against your property. With bridging a realistic and viable exit will be required by the lender. How Do Bridging Loans for Spain Work? Bridging loans are frequently utilised as an answer to a temporary cash flow problem. A common example of this type of situation is when a person wishes to

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Debt or Equity Financing For Your Business

Debt or Equity Financing For Your Business

When in need of financing a company stands before the choice of whether to use debt or equity financing. Debt financing is when funds are borrowed from for example a bank or a friend, whilst equity financing is when an investor receives ownership interest in the company in exchange for funds or assets. Debt as well as equity can be structured in different ways, and the distinction may not always be fully clear, as the case may be with convertible debentures or loans where the interest rate or repayment obligation is correlated with the results or financial standing of the Company. Two of the main advantages of traditional debt financing are that the creditor does not get any direct influence over the business and that

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Submitting Your Bridging Loan or Development Finance Enquiry

Submitting Your Bridging Loan or Development Finance Enquiry

Every lender has a different way of assessing a deal and here at Platinum Global Bridging Finance we are no different. Development finance in particular is looked at differently than a straightforward bridging deal and the requirements are also different. Here we will explain what we require and just as importantly, what we don’t need as part of the initial assessment. Submitting your initial enquiry This is where there is a lot of confusion. We understand that brokers and borrowers want to send us as much information as possible but this isn’t necessary for the initial consideration of the deal. For a development finance deal we need: Full security address (location of security site) Full name of borrower and/or the borrowing entity Details of borrower

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UK Care Homes and Retirement Living

UK Care Homes and Retirement Living

Total returns in the UK and European commercial real estate markets are expected to weaken over the next five years, but there are segments that remain underappreciated. These offer attractive risk-adjusted returns today, the potential for future yield compression and diversification benefits. We believe one such area of the market to be UK retirement living. This sector benefits from favourable demographics as the UK population ages, rising expectations for quality of life in later years and the wealthy baby-boomer generation entering retirement. The investment case for UK retirement living Retirement living in the UK can be defined as the provision of permanent accommodation for over 65-year-olds, typically in a community setting. These are not care homes, but rather targeted at able-bodied, capital-rich couples or widow(er)s

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European Real Estate Outlook 2020-2021

European Real Estate Outlook 2020-2021

The risk that the downturn in manufacturing might spread to the rest of the Eurozone economy has receded. Short-term indicators suggest that manufacturers’ export orders have stabilised and confidence among businesses in the services sector has increased since last September. Its forecast that the Eurozone economy will grow by 1.25% p.a. through 2020-2021, in line with recent progress. The main driver should be consumer spending, supported by higher real wages and increasing employment in the services sector. In addition, pressure from populist parties is likely to lead to higher government spending in France, Italy and Spain. Inflation in the Eurozone is likely to remain subdued at around 1% p.a. and its expected that the European Central Bank (ECB) will cut the deposit rate from -0.5%

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