MünchenerHyp has a strong and sucessful track record in commercial real estate lending in France. The bank offers bespoke financing solutions to our direct customers as well as it participates in loans made by other banks. Since 2007 our direct customers are served by our cooperation partner Pascal Roth with his company ARP Conseil.

Summary of the lending criteria for France:

  • 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