Münchener Hypothekenbank began lending business activities in Spain at the end of march 2004 when it signed an agreement of co-operation with Peter von Puttkamer, VP Investment & Finance Advisory, S.L., Madrid.
The Bank's main business emphasis is providing financial services to professional institutional and private real estate investors, who wish to acquire or refinance office, retail, logistics or hotel properties.
Based on its many years of experience Münchener Hypothekenbank has the know-how and contacts needed to make it an excellent partner for nationally and internationally financed real estate transactions in Spain.
Summary of lending criteria for Spain:
- Completed properties with stabilised cash flow (no construction, no development) in good state of maintenance and sufficient useful remaining life.
- Sustainable property income as a result of (i) a good location with positive economic outlook, (ii) a good future letting prospects after the expiration of the current lease agreements and (iii) suitability for third party use of the property.
- Preferably multi-let with low lease roll-over during the term of the loan and appropriate longer-termed lease agreements with creditworthy tenants.
- First-ranking financing of up to € 75 million provided on a single property. Higher loan amounts are available by way of club deals with other partner banks or by syndication of parts of the loan upon full underwriting. For portfolio deals we have the discretionary capacity for loans of more than € 75 million without additional financing partners.
- Comfortable Debt Service Coverage (ISCR/DSCR) based on current and sustainable rental leves and appropriate operating expenses.
- Loan to value (LTV) of up to 75 % with strong price advantage for lower leverage deals. Higher LTV's are possible depending on the corresponding mortgage lending value (Beleihungswert) of the property.
- Plausible exit scenario based on conservative assumptions
- Properties to be located in economically strong regions or in locations, which support the economic strenght and the dedicated use of the property.
Office properties will be primarily financed in Madrid and Barcelona. Other property types may be financed across Spain if the individual properties meet the usage conditions and the other lending criteria.