Lowest cost of capital
The senior tranche sets the blended cost of the whole structure.
Financing · Senior debt
Senior debt
The first-ranking loan is the backbone of every capital structure \u2013 its terms determine the economics of the entire project.
Senior debt is secured by a first-ranking land charge and carries the lowest risk – and therefore the lowest cost – of all tranches. Precisely because of that, the negotiation of margin, loan-to-value, covenants and drawdown conditions has the largest single impact on project returns.
We prepare bankable documentation, position the project correctly and run a structured process across banks, savings banks, insurers and debt funds so that offers become genuinely comparable.
Where a single lender cannot carry the ticket, we arrange club deals and syndications and coordinate the intercreditor arrangements with junior capital.
Suitable for
- Project developments with planning consent
- Standing assets and portfolio refinancings
- Acquisition financings under time pressure
- Club deals above single-lender limits
- ESG-linked green loans
Key facts
- Volume
- from € 5m
- Loan-to-value
- up to 70%
- Term
- 2 – 10 years
- Pricing
- reference rate plus margin
- Security
- first-ranking land charge
- Process
- 4 – 8 weeks to term sheet
Benefits
Why this structure works
Competitive process
Parallel approach produces comparable offers instead of a single quote.
Covenant discipline
We negotiate headroom on LTV, DSCR and pre-letting requirements.
Bankable documentation
Well-prepared credit papers shorten committee time noticeably.
Syndication capability
Larger tickets are placed as club deals across several lenders.
Junior compatible
Rankings are set up so mezzanine or whole-loan tranches remain possible.
Process
How we proceed
- Step 01
Structure and feasibility
Assessment of asset, cash flow, timeline and required loan quantum.
- Step 02
Credit documentation
Preparation of financial model, rent roll, cost plan and lender presentation.
- Step 03
Bank process
Simultaneous approach to suitable lenders and management of Q&A.
- Step 04
Term sheet comparison
Evaluation of margin, fees, covenants, prepayment and drawdown conditions.
- Step 05
Closing
Support through valuation, legal due diligence, documentation and drawdown.
From practice
What actually decides the deal
Do not stop at your house bank
Most developers collect two quotes and take the better one. We approach five to eight lenders in parallel — banks, insurers, debt funds. The gap between the first and the best offer typically runs 40 to 90 basis points.
Covenants are negotiable
Everybody talks margin, almost nobody talks LTV triggers, cash sweeps and top-up obligations. That is exactly where a delayed project runs into trouble. We negotiate headroom, not perfect landings.
Documents in credit-committee format
Committees read to their own template. Present cash flow, sensitivities and security overview the way the lender needs them anyway and the decision comes noticeably faster.
ESG is priced in
Energy standard, certification and refurbishment roadmap now feed straight into the margin. Document it and you save money; leave it open and you pay the risk premium.
Questions
What clients ask us most
Also relevant
Other building blocks
Most structures end up as a combination. These are the pieces we mix most often.
Is this the right structure for your project?
Send us your key figures — we respond with a reliable first assessment.