Investment finance

Investment finance

Content in the Real estate in corporate transactions subtopic may be of assistance in considering issues where the investment finance is being provided to an SPV or the transaction has a corporate wrapper.

With investment finance, the lender will be primarily interested in the cashflow generated by the property rentals and whether or not these will be sufficient to service the loan interest. The loan to value ratio is also important when considering a host of factors such as liquidity and the ability to pay back the loan either by sale or refinancing. The money borrowed is usually secured on the property and income stream by way of a fixed charge over the property.

Investment finance—the lending structure and key features of the facility agreement

Real estate finance in the form of lending against the cash flow generated by a property is thought of as traditional real estate finance. In its simplest form, it involves a loan to a borrower which is repaid from the rental income of the borrower’s property and involves a loan facility provided to a borrower for it to purchase or refinance a property (or

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