Gamut works for real estate investors looking to fund (re)development projects or refinance existing assets
We work for local and CEE developers, as well as multinational development groups
We can source financing from:
- Specialised, European real estate banks
- Commercial banks with interest in real estate assets
- Private credit (private debt) investors with real estate strategies
- Private equity or structured equity investors with real estate strategies
We can arrange financing from EUR 20m to an almost unlimited amount, subject to project structure and collateral
We work on projects requiring:
- Development finance
- Unsecured senior corporate financing
- Junior, second-lien, subordinated financing
- Structured equity financing
The typical cost of funds (expected IRR) ranges from c. 2% for specialised real estate banks financing senior secured transactions on prime assets to c. 20% for mezzanine and equity investments executed by investment funds
Financing characteristics by type of institutions:
- Specialised European Real Estate banks – typically provide senior secured financing. IRR starts from c. 2%-4%, depending on the project risk. Almost always comes with first-lien mortgage security on yielding asset.
- European, commercial wide-scope banks (range between 3% to 6% premium – depending on the project risk profile, for example, development stage, commercialisation stage, tenant mix, security package, etc)
- Unitranche, or bifurcated unitranche lending from private credit institutions – often provided by global funds able to provide a combination of senior (both secured and unsecured) and mezzanine (or second-lien) financing. Typical IRR for unitranche loans in the CEE for highest quality assets starts at c. 5-8%
- Pure private credit funds – can fund a broad spectrum of projects. Expected IRR starts from c. 7-8%
- Equity-mezzanine funds – provide junior financing often along senior financing. IRR begins at the level of c. 9%
- Pure equity, or equity-like funds – IRR spans from c. 14% and more