Commercial property refinancing
Deal box · EUR 1M to 50M+
Borrowers · Replacing a facility
What commercial property refinancing does.
See our approachThe new facility repays the old one before it falls due, so the property is never left without financing.
Where a property has gained value or been completed, a new facility can return part of that value to the owner, at up to 75% loan-to-value.
Facilities across a deal box of EUR 1M to EUR 50M+, with exceptions considered case by case, and a tenor matched to the next exit.
Refinancing commercial property is a new loan in every respect: a fresh valuation, a fresh assessment of the income or the exit, and new security registered in the investors’ favour. The old balance sets what the owner needs; today’s value sets what can be advanced.
Watson AM does not lend. We assess the property and its existing financing, structure the new facility and its security, prepare the file and present it to the investors in our network it suits. Each investor makes its own assessment and the funding decision.
How fast a refinancing moves.
A refinancing usually runs against a maturity date. These are the timings on our side; the investors’ own checks, the valuation and the registration of the security set the rest.
Enquire
The property, the loan in place and its maturity, the amount sought and the exit. A short brief is enough to begin.
Read
A principal reads the brief, checks it against the deal box and asks for anything missing.
Terms
Indicative terms in writing, with the new security and the exit set out.
Investors decide
Each investor runs its own checks and decides; 58 days is our average from mandate to funding.
Indicative terms are subject to investor approval, due diligence and final documentation. Funding is not guaranteed.
A refinancing is read on today’s numbers.
The new facility is assessed as if the property were arriving for the first time. Pick a reason to see what investors test.
The existing loan falls due and its lender will not roll it, or not on workable terms. The new facility is sized on a current valuation, so where values have moved since the old loan was written, the gap between the old balance and the new advance has to be met by the owner.
What investors test
- Current valuation
- Gap to the old balance
- Exit at the new maturity
The property is worth more than when it was financed, through completion, letting or the market, and the owner refinances to release part of that value. Investors read the new valuation and what the released funds will be used for.
What investors test
- Value today
- New loan-to-value
- Use of the funds
A project needs more time than its facility allows: a sale running slower, a letting still in progress. A new facility gives that time on terms matched to the revised exit.
What investors test
- The revised exit
- Cash flow or sales evidence
- Tenor against the plan
From the case files.
A Herlev loan, refinanced over 20 years.
Facility
CHF 2'820'000
refinancing
Loan-to-value
67.6%
Term
20 years
Term sheet
1 month
A property owner in Herlev, Greater Copenhagen, needed to replace an existing loan on more favourable long-term terms. We structured a 20-year facility and matched it with investors whose own horizon fitted that commitment.
A first-rank mortgage and a personal guarantee secure the facility. The tenor is a historical one: facilities today run 6 to 72 months. Read the full case file.
Refinancing questions.
The questions owners ask first. If yours is not here, write to us and we’ll take it from there.
What is commercial property refinancing?
Commercial property refinancing replaces an existing loan secured on a business-held property with a new facility on new terms. It is used to meet a maturity, release equity or extend a timeline, and the new loan is assessed from scratch: a current valuation, a fresh look at the exit and new security. Watson AM arranges commercial property refinancing across Europe and presents each facility to the investors in its network it suits.
How much can I refinance a commercial property for?
Our deal box runs from EUR 1M to EUR 50M+, with exceptions considered case by case, at up to 75% loan-to-value on a current valuation. Because the new facility is sized on today's value, it can come out smaller than the loan it replaces if values have fallen; the difference is then met from equity or from the property's income.
Can an existing commercial mortgage be refinanced?
Yes. The new facility repays the existing lender, whose security is released, and the new security is registered in the investors' favour as a condition of their funding. The conditions precedent list sets the order of those steps, so both sides know when each one happens.
Can a refinancing be combined with an acquisition?
Yes. The largest facility on our published book did exactly that: CHF 34'200'000 for a family-run hotel operator in Norway, refinancing part of its existing portfolio and acquiring new properties in a single facility at 34.5% loan-to-value.
How quickly can a refinancing be arranged?
A principal reads your brief within 24 hours, and indicative terms follow within 72 hours of a complete enquiry. Across our files, the average from mandate to funding is 58 days, so a refinancing is best started well ahead of the maturity date. Indicative terms are subject to investor approval, due diligence and final documentation. Funding is not guaranteed.