DHX - SMART CAPITAL SOLUTIONS

Services

Perspectives / consequences for real estate debt capital

Well established financing instrument with further increasing market share to be anticipated

High number of customer requests for whole loan financing, stretched senior loans or subordinated debt (financing from a single source)

Macroeconomic uncertainties (e.g. supply chain risks, gas supply, inflation) also create new opportunities. After the market correction - purchase prices and financing levels - there are more attractive investment opportunities with an adequate risk buffer.

The evolving banking regulations are forcing banks in the market environment to reduce financing expirations and certain risk-weighted assets

Leverage of classic financing shows a downward trend due to rating migrations and discounts in market values. This results in many attractive business opportunities in the subordinate area.

This results in additional growth potential for financings with better risk levels

Timely positioning for investors to successfully participate in these trends is key

Structural data and concept

Existing access to Real Estate Investoren in Germany and western Europe as well as huge network of banks allows the fund investors to participate in deals with potential of appreciation in value in Germany and Europe with a balanced risk / return profile.

A key focus of the work is to align the services provided in the context of providing debt capital to real estate investors with those provided by the capital providers within the fund. The following criteria play a key role in ensuring that all stakeholders are satisfied:

Key Financing Details

LTV max. [90%]
Asset class: Residential, office, retail, logistics, [hotel]
Regions: Germany, Benelux, France, [Spain, Poland, UK]
Speed

Key Fund Investment Details for Investors

Investment amount min. [EUR 20 million] – total planned volume [EUR 200 million]
Average LTV [75%]
Requirement for a Luxembourg fund vehicle
Return depending on risk profile min. [7% +]
ESG rating

Fundamental data and concept

Investments - Key Points:

Particular attractiveness of current acquisition prices for CRE investments in the context of the current downturn and the projected life cycles in this asset class

Interest potential – opportunities with a minimum interest rate of 7.0% / potential for appreciation

Proven track record in prime real estate locations and the ability to repay is a regular given

Participation in leverage, expertise, network and control processes of experienced market participants and the associated diversification opportunities

Well-rehearsed team in the context of sourcing, financing and risk management of CRE objects

The real estate industry is offering institutional investors attractive investment opportunities right now, because banks' capacity for real estate financing has continued to decrease. This creates space for alternative financing options

Hardly any other asset class offers a more attractive combination of reliability with real assets, constant dividend yields and often variable interest rate structures than real estate financing. Debt investors can get involved both on the mezzanine side and on the senior side, or make the entire debt capital available as a whole loan.