Case Study: Structured Financing to Complete a Residential Development in Segovia
At Onate, we partner with property developers to unlock capital, accelerate delivery, and optimise returns.
This case study highlights how our structured finance solution enabled a developer in Segovia, Spain to complete and deliver 14 pre-sold homes ahead of schedule, while minimising financing costs.
The Challenge
The developer approached Onate seeking funding to complete 14 homes in Segovia.
Funding requirement: €1.5 million
Project status: All 14 homes were structurally complete with roofs in place, holding an as-is value of €2.5 million and an estimated finished value of €4 million
Pre-sales: Every unit was pre-sold, with contractual delivery dates approaching.
Traditional lenders were unwilling to finance the partly completed assets.
Without swift and flexible capital, the developer risked breaching delivery deadlines and incurring penalties that could erode their profit margin.
Our Solution
Onate designed a bespoke financing structure, releasing funds in line with construction milestones, all while ensuring security for both the developer and the project.
Key terms included:
Total facility: €1,500,000
Structure: Drawdown spread across 3 performance-based tranches
Collateral: 14 structurally completed residential units
Repayment: Partial repayments aligned with each property delivery
This tranche-based structure ensured that capital was deployed precisely when needed, while ongoing repayments steadily reduced the outstanding principal. This approach significantly lowered overall interest costs compared with a traditional, single-drawdown loan.
The Outcome
The project reached full completion on time and on budget.
As homes were delivered, sales proceeds repaid the facility in step with construction milestones, unlocking value and protecting the developer’s profit margin.
This transaction demonstrates how Onate’s flexible finance enables developers to confidently bridge the gap between construction and sale, turning pre-sold inventory into realised profit with minimal carrying cost.
Contact Us
To get in touch with Onate about an opportunity you have in Spain, please reach out to one of our team:
Evelina Raykova | evelina.raykova@onate.com | +34 619 94 47 51
Javier Redondo Jiménez | javier.redondo@onate.com | +34 634 209 095
Luis Guirao García | luis.guirao@onate.com | +34 618 75 05 21
