Financing non-DAEB with foreign financiers, isn't that exciting?

Financing non-DAEB with foreign financiers, isn't that exciting?

Housing associations face major challenges in the coming years. Not only has it been agreed that housing associations will build 250.000 new social housing units, but also 50.000 new mid-market rental homes. While securing guaranteed financing from the DAEB (General Housing Act) is a familiar concept in the sector, securing unsecured financing is still an unfamiliar and challenging path for many associations. But that doesn't have to be daunting or complicated! Even if the financing comes from a foreign lender.

Unsecured financing from abroad

Daan Reekers: "In many cases, housing corporations raise financing for non-DAEB (mid-market rental housing) from well-known Dutch banks, such as BNG, Rabobank, or ABN Amro. They have the channels and access points for this. But why don't they look further afield for financing from the usual parties in the Netherlands? We see that foreign banks, such as those from Germany, can offer comparable or better rates and terms than the Dutch banks. They also offer comparable covenants and loan documentation."

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Reekers continues: "Alternative financiers (including Dutch parties) can also offer interesting propositions, for example, by financing a higher LTV (loan-to-value) or LTC (loan-to-cost). This allows the housing association to use fewer of its own resources, allowing it to carry out more projects. Or they can provide financing where traditional financiers are less interested, for example, when purchasing a complex with an energy label F or G."

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Adelaer also brokers mezzanine loans or junior loans. With a mezzanine loan, you take out an additional loan on top of an existing one, increasing your leverage. For the lender, this comes at a higher risk, and therefore the interest rates will also be higher. If your existing lender is unwilling or unable to provide this mezzanine loan, we opt for a junior loan (senior and mezzanine combined).

Risk migration as a substantiated market research by lenders

Daan Reekers: "In my opinion, corporations can achieve enormous benefits, and in the context of risk migration, this is essential. After all, investing their social funds requires thorough research into all the relevant lenders available at that time. The corporation places that responsibility on us, and we oversee the market and ensure that the best terms are achieved in their best interest."

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Adelaer offers a unique financing platform that helps real estate professionals find the best financing provider. On this platform, we connect lenders and borrowers seeking real estate financing. More than 2.000 lenders across Europe are now connected to this platform, allowing us to always find the most suitable partner.

Who is Adelaer Financial Architects?

As a high-end debt broker, Adelaer mediates in the creation of financing agreements between banks, insurers, pension funds, hedge funds, and other CRE financing providers. Adelaer is an independent debt broker that prioritizes client interests and prioritizes transparency throughout the process. We specialize in creative financing solutions. This includes financing from traditional banks, both domestically and internationally, as well as from insurers, pension funds, and investment funds.

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Adelaer carries out the following work for the customer:

• Analyze the information and develop the financing structure

• Assessing the business case

• Drafting an information memorandum

• Contacting and introducing interested financiers

• Mediation and negotiation with interested financiers

• Providing guidance to external advisors (legal, tax)

• Carrying out loan management (via Adelaer's own software)