Problem
- High-net-worth investor with a €40M property portfolio in continental Europe
- Short-term bridging loan secured against two properties to facilitate a new acquisition
- Due to COVID, struggling to secure finance to repay the bridging loan
- Did not want to use existing cash reserves to repay
- Client also expressed an interest in diversifying into areas besides property
Solution
Approached a multinational private bank with expertise in handling complex, high-value real estate portfolios. Given the client's strong asset base and investment goals, structured a bespoke financing solution providing both debt resolution and capital for diversification.
The bank had a keen interest in the client's portfolio and was able to offer a rare package:
- Capital raising 50% against the portfolio — repaying the outstanding bridging debt and putting the balance of funds into an investment account
- Enabled the client to create the diversification he required
- Structured the transaction through Luxembourg, optimising tax efficiency and wealth management
Outcome
- Secured long-term refinancing at an exceptionally low interest rate, significantly reducing financial strain
- Raised €20M against the portfolio — clearing the bridging debt and funding diversification into high-yield asset classes
- Structured through Luxembourg for optimal tax efficiency
Key Lesson
Cross-border income and overseas structures narrow the lender field sharply. Established private-banking relationships are what turn a stalled refinance into a completed one.
Tax treatment depends on individual circumstances. For specialist tax advice, please refer to an accountant or tax specialist.
Explore this type of finance
International mortgages · Private bank mortgages
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Refinancing a 130+ property portfolio · Whole-portfolio incorporation · £2.4m London refinance & purchase