Real Estate Private Debt
Invest into financing of specific projects of the real-estate sector through a participation on the loan agreement.
The projects undergo a pre-investment due diligence and are approved by the investment commitee.
- Investors determine the amount of exposure to individual projects at their discretion
- A thorough investment process and investment analysis available to investors
- Monitoring and management of the investment over the course of the project
Financed investment opportunities
Total invested
0.0billion CZKTotal paidoff
0.0billion CZKUpvest's current exposure
0.0billion CZKWe structured
0opportunitiesFor projects worth
0.0billion CZK
We offer investments in the financing of projects of leading development groups
Investment approach
We evaluate financial projects from a commercial, technical, legal and possibly tax and financial point of view. We carry out inspections in cooperation with our partners from leading consulting companies. The results of the checks are an important input for the decision to provide financing, which must be approved by the investment committee.
The key role of Upvest then lies in the correct setting of the credit relationship on the commercial side. Above all, in the timing of the release of the financing itself, with regard to the achievement of selected project milestones, which lead to the refinement of the project's budget and timetable and to the confirmation of predicted sales. These facts increase the debt capacity of the project and are important for the correct setting of the conditions for drawing the loan. Upvest also sets other obligations and declarations, including the obligation to comply with selected ratios such as LTV / LTC or ICR. Among other things, these obligations motivate the borrower to implement the project effectively and in accordance with the agreed business plan.
We cooperate with the following partners during pre-investment inspections
Upvest's position in the capital structure of financed projects
Mezzanine financing
Upvest's standard position within the capital structure of the project is a junior debt position, i.e. a position subordinated to bank financing. By default, this subordination means that the financing can be repaid only after the bank loan has been fully repaid. For projects financed by junior debt, it is important to enter at the moment when the project's sales are significantly validated (especially through realized pre-sales or rental contracts), the items of the project budget are contracted (for development projects, it is primarily a matter of contracting construction costs at a fixed price) and a good estimate can be made time schedule of project implementation. Among other things, we also check the total indebtedness against the total project costs and against the estimated value of the project. Also key is the reality of the business plan and therefore the visibility of debt repayment, both bank and junior, to the expected maturity of the loan.
Project capital structure
Payment order
Developer
Upvest
Bank
Senior financing
In some cases we provide senior financing. This is linked to the possibility of establishing liens on the assets of the borrower, which primarily leads to a reduction in the risk of non-payment of the provided loan in the event of project failure. The fact that we act as a senior, i.e. secured creditor in the project allows us to take certain risks that we would no longer be willing to accept from the position of a junior creditor. Such risks generally include one or more facts relating to the absence of contracted sales or leases, the absence of supply contracts in relation to construction costs, or significant uncertainty in the project's timetable.
Project capital structure
Payment order
Developer
Upvest
Transaction process
1.
Sourcing, finding suitable opportunities
2.
Commercial underwriting and preparation of loan documentation
3.
Financing execution
Signing the loan agreement
Fundraising
Compliance with the conditions for drawing
Provision of credit
Real Estate Private Debt and its position in the investment portfolio
We offer investors the opportunity to participate in professionally structured financing of selected real estate projects. For investors, Upvest's product thus represents an opportunity to obtain passive debt exposure to specific real estate projects without the need to accept disproportionate concentration risk. The parameters of such an exposure are set by Upvest's analytical team with an approach consisting in controlling and protecting the risk of a reduction in project performance and with a return reflecting the assumed risk of the given exposure.
Benefits for financed companies
Upvest provides tailor-made solutions for real estate sponsors. Loans we provide and their terms and conditions are structured with respect to the projects´ specific parameters. This flexibility in loan structuring allows real estate sponsors to partner up with Upvest on complex transactions and project realisations across all real estate market segments and during any phase of the project lifecycle. We believe that we can establish a long-term partnership through our approach to project financing.
- Upvest financing enables more capital-intensive projects
- Upvest financing allows you to refinance part of your own resources during the project implementation and use the funds for the acquisition of new land
- Upvest financing allows you to undertake multiple projects over time
- Higher leverage and thus higher return on equity (and higher risk for equity holders)
Do you have any questions?
Read the FAQ, contact us at info@upvest.cz or call us at +420 773 633 925
The majority owner of upvest s.r.o. is the company
Upvest is registered as a small-scale payment service provider by the Czech National Bank.
Contact
- upvest s.r.o.
Budova Churchill I – BASE
Italská 2581/67
120 00 Praha 2 – Vinohrady