£602 Million Hotel Finance In Germany
- Client: Hotel developer, Limited company
- Type of Property: Hotel development in Germany
- Value of Property: £602 million
- Loan-to-Value Ratio: 70%
A private bank approached Hectocorn to help its client secure significant investment for a £602 million hotel development in Germany. Hectocorn used its network of niche international lenders to secure development finance, which offered the most favourable agreement for its project.
The private bank couldn’t assist as they didn’t want the client to move assets under management to another bank. While the client struggled to secure the finance they required and favourable rates and agreements for the project through lenders they had access to. The client also struggled to agree on favourable terms with local lenders in Germany, who had restrictive criteria and wouldn’t consider foreign assets as collateral.
Hectocorn introduced the investor to a private German bank with expertise in handling high-value hospitality investments. We enabled the client to secure development finance, which offers lucrative long-term returns on building and developing a hospitality property. The funds were released in stages to align with the project’s progress, reduce interest costs and improve cash flow.
We also helped the client maximise its borrowing potential by negotiating a high loan-to-value ratio of 70%. This agreement allowed the client to develop a more extensive project scope than it could have achieved through traditional financing. We also struck favourable terms that met the client’s unique financial requirements, including a bespoke repayment structure and drawdown structure aligned with the project’s expected revenue generation.
Our team led the negotiation from start to finish, from the first consultation and project assessment to the loan and terms agreement. This approach delighted the investor as it minimised the amount of work required, enabled them to focus on other investment opportunities, and offered a clear exit strategy.
Hectocorn helps ultra-high-net-worth individuals and companies secure substantial financing packages for developing the most desirable properties. Our established relationships with niche lenders enable us to secure the most favourable terms and structure debt on your portfolio to maximise your borrowing power.
Discover how Hectocorn can help you fund significant projects like hotel development by getting in touch.
