In difficult markets lenders tend to favour this asset class as it provides income to service and amortise the debt.

Main Lenders' criteria

It follows that the reliability of that income and for how long it is committed are the primary areas to establish first. However other areas which lenders will focus on are the location and quality of the building, the background and experience of the acquiring group and of course the property investment value and vacant possession (VP) value.

In simple terms the better the quality of the asset in all respects, the more competitive the funding and the more flexibility within the structure (i.e. loan amount, length of the loan term, amortisation profile, etc.) 

The lenders who are prepared to consider the secondary market, need a greater risk return on their money, coupled with steeper amortisation and a more substantial equity contribution from the investor. 

918 million SEK "warehouse" facility - Sweden

76.4 million mixed use offices, retail and residential development