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Real estate
development financing

Upvest focuses on providing loans for the preparation and execution of real estate projects. We specialize in situations, where banks do not provide debt or offer inflexible and restrictive conditions. We are able to assess any request for financing and if it appears reasonable, we propose a viable financing structure. Our financing can be used in all phases of a standard property development project.

Types of Loans

Construction phase mezzanine loan

The loan is complementary to bank financing. It is possible to use the loan for refinancing the equity for property development as well as income generating projects. We recommend to structure mezzanine financing before the tender for senior financing of the project.

Land acquisition senior financing

Land acquisition cost can partly be financed by mezzanine loan. Such a loan can be repaid no sooner than just before the launch of construction works, and thus after obtaining the construction permit.

Project preparation phase senior financing

The loan can be used to cover expenses related to the preparatory works before the construction start. The loan can be drawn for financing of the architecture study, zoning permit proceedings or construction permit proceedings.

Construction phase senior financing

Property development financing is available for situations where bank requirements cannot be met or where less strict conditions, such as using client's money to finance project expenses, are necessary. We are able to enter these projects in an advanced construction phase.

Project acquisition bridge loan

Short-term financing (repayment in 12 months since loan drawing) of acquisitions of property or project SPVs mainly when a transaction does not allow the use of bank financing due to time aspects or inability to secure the loan.

Income property mezzanine loan

Unsecured debt financing provided on top of bank financing for income generating properties. The loan can also be used to refinance a portion of the project equity.

Benefits for Developers

  • Mezzanine financing enables executing more capital-intensive projects: Upvest loan can replace up to a half of the equity required for bank financing.
  • It enables refinancing part of the equity during project realisation and thus makes equity available for acquisition of new land or projects: Acquisition opportunities may arise even when the property developer does not have enough disposable resources. Upvest debt financing adds the needed liquidity thus enabling execution of the desired acquisition.
  • It enables the execution of multiple projects simultaneously: Not only does the mezzanine financing enable to execute more capital-intensive projects, but it also enables to carry out multiple projects at once.
  • Boosting return on equity via a flexible loan product: Increasing the project SPV debt increases the return on equity, but it also increases the project SPV shareholder's risk. Therefore, we diligently review if the project realisation will not be jeopardised by drawing additional debt.

Request a loan from Upvest

Contact Person

Loan

CZK

Contact us

novyprojekt@upvest.cz

+420 773 633 925

How does the evaluation process work?

To save your time, we structure the assessment process into two parts.

Initial assessment

  • Filling out 1st part of the questionnaire
  • Discussion with the investment committee
  • Indicative proposal for financing delivered within 3—5 days
  • Property developer feedback / offer approval
  • Final proposal with a detailed case description submitted for the investment committee approval

Due diligence (verification of the initial assessment assumptions)

  • Filling out the 2nd part of the questionnaire and sending out the necessary materials
  • Execution of commercial, financial, technical, and legal due diligence
  • Loan contract proposal
  • Final Upvest approval
  • Signing the loan agreement
  • Loan drawing

Společníkem upvest s.r.o. je

KB Smart Solutions Logo

Upvest is registered as a small-scale payment service provider by the Czech National Bank.

Contact

  • info@upvest.cz

    novyprojekt@upvest.cz

  • upvest s.r.o.
    Budova Churchill I – BASE
    Italská 2581/67
    120 00 Praha 2Vinohrady

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