For owners of yielding commercial and residential portfolios above EUR 20 million — where the bank market no longer offers acceptable terms, or where scale, confidentiality or strategic fit call for a different source of senior debt.
Since the post-2022 rate environment and the tightening of bank lending criteria, portfolio holders and developers across Europe increasingly face a simple problem: the term loan matures, the property has not lost value, but the bank wants significantly more equity — or will not refinance at all.
For portfolios of EUR 20 million and above, the capital market is frequently a more efficient source of senior debt than the bank market — particularly for objects where the bank's internal rating has deteriorated despite stable fundamentals.
SH structures the financing through a bankruptcy-remote Fin-Co that issues notes to institutional investors. The borrower retains full ownership of the real asset and the operating control. Only the financing layer changes.
This applies equally to single-object financings, multi-object portfolios, and residential or commercial development pipelines requiring follow-on financing beyond the construction loan.
Holders of yielding commercial or residential portfolios seeking term financing above EUR 20 million. Typical use cases: refinancing maturing bank loans, restructuring fragmented lending into one facility, releasing equity for further acquisitions.
Developers requiring follow-on financing after construction completion, bridging to stabilisation and exit. LMA-standard documentation with flexible prepayment for sale-down scenarios.
Family offices holding large property portfolios looking for financing structures outside the traditional bank relationship — for confidentiality, for scale, or to preserve other banking capacity for trading and investment.
Owners of commercial property used in their own business operations — office headquarters, production facilities, hotels. Sale-and-leaseback structures and mortgage-backed structures both possible.
Apartment blocks, purpose-built rental housing, student residences. Stabilised yielding portfolios or those with identifiable lease-up trajectory.
Prime and secondary office properties with strong covenant tenants. Retail — particularly food-anchored neighbourhood retail, not discretionary shopping centres.
Hotels with experienced operators, care facilities with defined operating agreements, student accommodation. Operator covenant critical.
Logistics properties with long-term leases to credit tenants, light industrial portfolios with diversified tenancy.
Cross-asset portfolios combining several of the above. Single Fin-Co structure can finance heterogeneous collateral where the pool is large enough for diversification.
Follow-on financing post construction completion, bridging to full lease-up or to programmatic exit. Not greenfield development finance.
Structures are non-recourse to the borrower's wider group. Documentation follows LMA standards. Pricing is determined by transaction quality — LTV, tenant profile, location, amortisation — and current capital market conditions, not by internal bank relationship pricing.
We receive portfolio data under NDA, run preliminary credit analysis, and issue an indicative term sheet including LTV, tenor, expected pricing range and key conditions. No fee payable at this stage.
If the indicative terms are acceptable, we move to mandate. Appointment of valuer, legal counsel, and tax advisor where cross-border. Structure finalisation: Fin-Co jurisdiction, hedging, reserve accounts, covenants.
Third-party valuation, technical and environmental due diligence where applicable, legal due diligence on title and existing encumbrances. Drafting of LMA loan agreement, security documentation, and — if capital-market issuance — prospectus.
Internal credit committee approval, investor marketing for the corresponding notes, pricing and allocation. Simultaneous closing of loan and note issuance.
Loan funds flow to the Asset-Co against security transfer. Existing bank financing released, mortgage certificates assigned to the security agent for the benefit of bondholders.