Successful commercial real estate financing for new fast food restaurant location

Financing totaling €1,700,000 was provided by three investors to two experienced real estate investors. Recently they had purchased a land position in a high visibility location. The planning permission and building permit had already been finally granted and a 20-year lease was in place.

Bart van der Wielen: These entrepreneurs are experienced in real estate (development) and construction is done under construction supervision. In addition, it involves relatively simple construction (shell). There is full liability of both entrepreneurs in private. The Loan to Value of 73% at inception was relatively high, but acceptable given the long lease. We believed that the return to the investor at 5.25% interest per year was appropriate given the very low risk, and our investors agreed. A great deal for all parties!