Commercial properties financing



 
 

Commercial loans

We offer the business entities attractive and modern forms of financing of the following commercial property:

  • office buildings
  • commercial and warehouse facilities
  • logistics and service centers
  • hotels
  • other business establishments

 

The loan may be designed for:

  • implementation of new investment projects
  • purchase of real property
  • refinancing the existing facilities with the possibility of repaying bank loans, loans received from stockholders or shareholders, and own funds which in the past had been involved in the project’s implementation.
 

Credit terms

  • Maximum tenor of financing - 20 years.
  • Loan Currency - EUR, PLN
  • Own contribution - minimum 20% of the investment project’s total costs

Loan Collateral

The basic collaterals required by the Bank include:

    • top-priority mortgage established for the benefit of the Bank on the ownership title or perpetual usufruct
    • registered pledge on shares in the special purpose vehicle
    • assignment of rights under an insurance policy against fire and other accidents affecting the credited real property issued by an Insurance Company accepted by the Bank
    • assignment of receivables under lease agreements concerning the space in the credited facility
    • proxy to the special purpose vehicle’s account
    • blocking funds in the account of Debt Servicing Reserve in the amount agreed upon with the Bank.
 

Project finance

The model of commercial project financing is based on the “project finance” formula which involves the establishment of a special purpose vehicle in order to mitigate the risk, both on the Bank’s and the borrower’s side.

The special purpose vehicle is designed for the implementation of a specific project, needs to become the owner and the administrator of the refinanced real property, and its business operations should be limited to the activities connected with the real property’s ownership and administration.

 

5 steps

The credit procedure is conducted in the following stages

Step 1 - Meeting with the Credit Advisor
During the first meeting, the Advisor will seek to obtain all necessary information, pertaining to the Borrower and the financed project.

Step 2 - Preparing the required documents
To obtain a full picture of the situation of the financed project, the Bank will request the following information:

  • Documents pertaining to the legal status and technical condition of the property,
  • Documents pertaining to the tenants of the building,
  • Documents pertaining to the Borrower.

Step 3 - "Due-diligence" analysis of the project
After obtaining a complete set of documents, the Bank will perform an appraisal of the real estate, to establish its banking-mortgage value and conduct due-diligence analysis. Based on the results of the appraisal and an analysis, the Advisor will prepare a preliminary financing proposal.

Step 4 - Submitting the loan application
After obtaining a complete set of documents, the Bank will perform an appraisal of the real estate, to establish its banking-mortgage value and conduct loan application - an internal document that contains all information on the project: financial terms and conditions of the loan, security, criteria for disbursement, information about the real estate, etc.

Step 5 - Signing the loan agreement and disbursement of the loan
After acceptance of final terms and conditions by both parties, the loan agreement and agreements pertaining to security mechanisms are executed.