Commercial Real Estate Financing

NIBC Commercial Real Estate finances multiple asset classes such as residential real estate, retail, logistics, office, hotel, parking garage and light-industrial assets with a ticket size between €/£15m and €/£50m.

With our label OIMIO we finance non-residential assets between €/£2,5m up to €/£15m.

With our label ‘Vastgoedhypotheek’ we finance residential real estate with smaller ticket sizes up to €/£15m. 

The amount of commercial real estate financing you can apply for will depend on a variety of factors, including the value and cash flow of the property, creditworthiness, and the type of loan you are seeking.

We finance real estate transaction between €/£15m and €/£50m and up to 75% of the property's value, depending on the property type, location, and other factors.

In the Netherlands, we finance real estate projects and assets for all asset classes.

Within the Benelux, DACH, Ireland, Nordics, Southern Europe and the United Kingdom we offer development and construction financing with a ticket size between €/£15m up to €/£30m for residential real estate, such as:

• Build to rent housing (BTR)
• Purpose built student housing (PBSA)
• Senior Living
• Co-Living 

Interest rates range from 3.5% to 6%, depending on risk profile of the transaction.

The time it takes to get credit approved for a commercial real estate financing can vary depending on several factors, including the complexity of the transaction and the completeness of the borrower's documentation.

Overal credit approval can be done within 6-8 weeks.

Closing the transaction (after obtaining credit approval) and receiving the funds takes place within 4-6 weeks.

General timeline for our commercial real estate financing approval process:

1. Pre-qualification / KYC: This initial step involves providing basic information about the borrower and the property, that evaluates whether the borrower meets the basic eligibility requirements. This step can be completed within a few days to a week.
2. Loan Application: Once the borrower has completed the pre-qualification process, they can submit a loan application, which includes detailed information about the sponsor, the borrower, the property, and the proposed loan terms. The application may require a few weeks to complete, depending on the complexity of the transaction.
3. Due Diligence: After the loan application is submitted, we will start the due diligence process, which involves a thorough review of the borrower's financial history, the property's financials, and the proposed loan terms. This step can take a few weeks, depending on complexity of the transaction.
4. Closing: After the loan is approved, we will finalize the loan documents and close the loan. This step can take a few weeks to complete, depending on the complexity of the transaction.

Several factors can impact your eligibility for a commercial real estate loan. Here are some of the main factors that we typically consider:

• Property value and cash flow: we will evaluate the value of the property, the income it generates, and its potential for future income and assess the risk of the loan.
• Borrower's creditworthiness: we will evaluate your credit history and credit score to assess your ability to repay the loan.
• Debt Service Coverage Ratio (DSCR): This ratio measures the property's ability to generate enough cash flow to cover the loan's debt service (principal and interest payments).
• Experience: we consider the sponsor’s experience in managing similar types of commercial real estate properties. Having experience in managing similar properties demonstrates your ability to manage the property effectively and speed up loan approval.
• Business Plan: We may require a business plan that outlines the company's operations, financial projections, and management team. A well-developed business plan can increase your chances of loan approval.

Ultimately, your eligibility for a commercial real estate loan will depend on a combination of these factors, as well as other factors that may be specific to your situation. 

Collateral requirements for commercial real estate financing can vary depending on the the size and type of the property, and the borrower's financial situation. However, the most common types of collateral for commercial real estate financing include:

• The property itself: In most cases, the commercial property being purchased or refinanced serves as the primary collateral for the loan. We will analyse the property's value, location, condition, and cash flow to assess the risk of the loan.
• Sponsor Guarantee: We may require a sponsor or a holding company guarantee which agrees to take responsibility for (a portion of) the loan in case of default. This guarantee may be secured or unsecured.
• Other Assets: We may also consider other assets of the borrower as collateral. These assets can include equipment, inventory, accounts receivable, or other business-related assets."