Case Study: Bridging Finance of €1.4M provided in Dublin
Financing purchase of a residential development site
Financing solutions required with a week
In June 2022, Onate was presented with a unique opportunity by a property investor seeking to acquire a prime residential development site at auction in Dublin 18. This time-sensitive deal required efficient and creative financing solutions to secure the property within a week.
The property in question had full planning permission for the construction of 28 residential units. It was a strategic investment opportunity, but the auction date was just days away. The borrower needed a quick financing solution to secure this property. Recognising the urgency and complexity of the situation, the promoter met with Onate's lending manager. Together, they strategised on how to structure the deal most effectively. It was decided that releasing equity from the borrower's four bedroom residential property in Dublin 18 would be the most efficient approach. This property was already owned in an SPV and had no borrowings against it.
The residential property had an appraised value of €2.1 million, and Onate extended a loan of €1.4 million, representing a 71% loan-to-value (LTV) ratio. Within just two days of the initial approach, Onate issued a term sheet, enabling the borrower to participate in the auction confidently. The speed and certainty of execution provided by Onate played a pivotal role in securing the borrower's trust and facilitating the swift progress of the deal.
Once the residential development site was successfully secured at auction, the borrower promptly paid the due diligence fee. Onate's dedicated underwriting ensured that all necessary procedures were completed within the four-week deadline. The borrower had already arranged for overseas financing to fund the development of the acquired property and to repay the Onate loan. The certainty of repayment was factored into the loan structure, ensuring a clear and viable exit strategy. Onate's swift and flexible financing solution allowed the borrower to seize the opportunity presented by the auction, secure the development site, and proceed with their ambitious residential project. The loan provided by Onate was fully repaid within the 12-month term.
By tailoring a financing package that met the borrower's needs and navigating the 4 week timeline of the auction, Onate showcased its expertise in delivering financial solutions that drives success.
