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Acquisition Financing: 'The Bellevue' Commercial Asset
Client
International Property Group
Category
Dedicated Money Loans & Financing
Date
20 Mar, 2024
Status
Successfully Repaid

“The Bellevue” is a landmark mixed-use commercial building located in a prime area of Zurich’s Bahnhofstrasse district. A strategic opportunity arose for an international property group to acquire this high-yield asset in an off-market transaction.

The primary challenge was the seller’s requirement for a rapid closing, a timeline that traditional institutional lenders could not meet. The client needed a reliable capital partner who could perform due diligence and deploy significant funds swiftly to secure the deal, otherwise they risked losing the acquisition to competing interests.

Our Role and Strategy

A. Real Constructions SA acted as the sole, direct lender, providing a CHF 35 million bridge loan to facilitate the acquisition. Our deep understanding of the Swiss real estate market allowed us to complete our underwriting and due diligence process with exceptional speed.

Our financing strategy was designed for certainty and efficiency:

  1. Rapid Deployment: We structured, approved, and funded the entire loan within 12 business days from the initial engagement, meeting the seller’s stringent deadline.
  2. Asset-Centric Underwriting: Our decision was based on the intrinsic quality and value of the underlying real estate asset, allowing for greater flexibility than conventional credit-based assessments.
  3. Clear Exit Path: The loan was structured as a short-term bridge facility, providing the client with the necessary time to arrange long-term, conventional financing with their institutional banking partners post-acquisition.

Outcome and Impact

Our dedicated financing enabled the client to successfully acquire a trophy asset, securing a valuable addition to their European portfolio. The bridge loan was fully repaid on schedule upon the client securing their long-term mortgage.

This project perfectly illustrates our capacity to act as a decisive and agile financial partner. By providing the necessary liquidity at a critical moment, we empowered our client to execute their strategic vision without delay, reinforcing our reputation as a trusted source of capital for significant real estate transactions.

Transaction Highlights

  • Loan Amount: CHF 35 Million Bridge Loan
  • Time to Close: 12 Business Days
  • Asset Type: Prime Mixed-Use Commercial (Retail & Office)
  • Location: Zurich CBD, Switzerland
  • Purpose: Time-Sensitive Strategic Acquisition
  • Outcome: Successful acquisition by the client and full repayment of the loan.
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