- Portfolio Value: Circa €17 million
- Loan Amount: Approximately €10 million
- AUM: Circa €3 million
- Location: Spain
A high-net-worth client with a portfolio of luxury properties in Spain approached Enness to explore options for raising capital against their existing assets. The objective was to unlock liquidity from the portfolio and use the proceeds to pursue further real estate investment opportunities.
With loan requirements reaching €10 million or more, financing in Spain and the Balearics can often be subject to lower maximum loan-to-value ratios. While pricing was an important consideration for the client, maximising the available LTV was a priority because the additional capital would support their onward investment plans.
Enness identified a private banking solution where the quality of the client's assets and overall financial profile allowed the lender to offer an attractive LTV. This enabled the client to access the required level of borrowing while retaining liquidity for future investment opportunities.
The client also identified an opportunity to increase the value of some of the properties through short-term value-add works following the initial drawdown. The lender agreed to consider a future increase in the facility based on the improved valuation, without requiring the client to refinance the existing facility. This provided additional flexibility to release equity from the portfolio in the future, subject to the lender's assessment and criteria.
As with many European private bank mortgages, the facility involved an assets-under-management relationship with the bank. The client provided approximately €3 million in AUM, satisfying the bank's requirement for Day 1 collateral while allowing the client to retain a significant proportion of their overall liquidity.
The loan was structured with a Euribor-based interest rate, providing a variable-rate structure aligned with the client's requirements. The overall structure gave the client access to substantial property-backed liquidity while retaining flexibility to pursue additional investment opportunities.
This case demonstrates how international mortgages and private banking solutions can be structured around the needs of high-net-worth property investors. For clients with significant property portfolios, the right lender may be able to consider both the quality of the underlying assets and the client's wider financial position when determining the appropriate financing structure.
Enness specialises in arranging bespoke private bank mortgages across prime European markets. Where clients are looking to unlock capital from existing property holdings, equity release can also form part of a wider investment or liquidity strategy, subject to lender criteria.
Enness has established relationships with private banks and specialist lenders across Europe, allowing us to identify financing structures for complex, high-value property portfolios.
If you are looking to raise capital against a property portfolio or finance further investment in Europe, speak to a mortgage specialist to discuss your requirements.
Disclaimer:
This case study is for information and illustrative purposes only and does not constitute financial, tax, legal or investment advice. Finance is subject to lender criteria, valuation, affordability and individual circumstances. Interest rates and lending criteria may change, and any future increase in borrowing would be subject to the lender's assessment and approval. Property values can fall as well as rise.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
