Hectocorn recently assisted a Dutch national based in Rotterdam to secure 100% financing for the acquisition of a prime commercial office asset in the city, valued at €14,280,000.
The client was purchasing the property through their BV (Besloten Vennootschap — a Dutch private limited company), and sought a full loan-to-value (LTV) facility to maximise leverage and maintain liquidity. This kind of structure is typically challenging to obtain, particularly in the commercial real estate sector, where lenders often require substantial equity contributions upfront.
Why the Deal Worked
The breakthrough came from the quality of the tenant covenant. The asset was fully let to tenants with AAA credit ratings, as assessed by Fitch Ratings. This provided exceptional security for the lender and enabled Hectocorn to negotiate a 100% LTV facility over a 23-year term — a rare and highly valuable outcome in the Dutch lending market.
100% LTV Commercial Loan Terms
The loan was structured as a fully amortising facility, with a blended interest rate of 1.85% plus the prevailing Dutch bond rate at closing. Repayments were aligned with the property’s rental income profile: 8% of the annual rental income was earmarked for debt service, with the remainder used to gradually amortise the capital over time.
This approach enabled the client to acquire a high-performing asset with strong capital appreciation potential, while preserving liquidity and benefiting from low-cost, long-term financing.
Strategic Benefits
- 100% LTV financing: Rarely achieved in commercial markets without personal guarantees or additional collateral
- No equity injection required: Full acquisition cost financed through structured lending
- Low interest rate: 1.85% + bond rate, secured due to strong tenant covenant
- Amortisation tailored to income: Rental income supported both interest and principal repayment
- Capital growth potential: The asset offered both income yield and long-term appreciation
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The Hectocorn Advantage
This case demonstrates Hectocorn’s ability to structure complex, high-leverage property finance solutions — even where 100% debt funding is required. By leveraging a strong understanding of lender risk appetite and tenant covenant quality, we were able to deliver a unique outcome that aligned perfectly with the client’s investment objectives.
If you’re acquiring commercial property in the Netherlands or elsewhere in Europe and are exploring non-traditional or fully-leveraged financing routes, contact our team to explore what’s possible.
Frequently Asked Questions
Yes, but it is exceptionally rare and typically only possible under specific conditions. In this case, 100% LTV was achieved due to the strength of the tenant covenant (AAA-rated) and the strategic structuring of the loan.
Most lenders require significant equity contributions, so full financing is generally only available through specialist channels.
The key factor was the presence of AAA-rated tenants, which significantly reduced the perceived risk for the lender.
This, combined with a stable rental income profile, a long lease term, and the borrower’s corporate structure (a Dutch BV), gave lenders the confidence to offer full acquisition finance.
An amortised commercial loan is one where both interest and capital are repaid over time, rather than just interest.
In this case, 8% of the net rental income was allocated to interest payments, while the remainder went toward gradually reducing the loan principal.
This structure allowed the client to build equity over time while benefiting from low-cost financing.
The lender priced the loan using a base margin (1.85%) plus the prevailing Dutch government bond rate, which is a common approach in long-term commercial lending.
This helps align the loan with market conditions and gives both borrower and lender transparency and predictability.
Yes. Hectocorn specialises in structuring bespoke property finance solutions across Europe and the UK, particularly in cases involving complex ownership, cross-border lending, or non-standard requirements such as high leverage, offshore entities, or unusual asset types.