Property finance constitutes one of the principal models available for the implementation of investments in the real property sector (its shows certain similarities to project finance. Project risks are transferred to a project company (SPV) and the debt financing is repaid either from cash-flows generated by the real estate following completion of the construction phase and its commercialisation or from the proceeds generated from sale of that real estate. Debt financing is always secured with a mortgage established on the financed real estate and with other security interest over remaining assets of the project company (mainly, on the cash receivables against the tenants or purchasers). Repayment of the equity is usually subordinated to the repayment of debt financing.
Taking into account the most recent financial crisis, when many planned investments have been suspended for years and prices of the real estate assets have dramatically dropped, accurate identification of main business and legal risks related to real property investments and their proper reflection in the finance documentation may have significant impact on a successful completion of such investments.
In respect of property finance, our lawyers have large experience as external legal advisors acting for banks, international financial institutions and investors. Selected projects carried out in Poland in relation to which our lawyers have advised include:
- refinancing of Galeria Mokotów in Warsaw;
- refinancing of a very large portfolio of shopping centres in Poland
- financing of the construction of shopping centre “Nowa Europa” in Gliwice
- financing of the construction of 5 housing complexes in Warsaw and Gdańsk
- financing of the construction of shopping centre “Toruń Plaza” in Toruń
- refinancing of office building WFC in Warsaw
- refinancing of office building Warsaw Trade Tower in Warsaw
- financing of the acquisition and refurbishment of the office building “Holland Park” in Warsaw
- financing of the construction of office complex “Gdański Business Center” in Warsaw
- financing of the construction of office complex “Zabłocie Business Park” in Kraków
- financing of the construction of office complex “Arkada Business Park” in Bydgoszcz
- financing of the construction of a number of residential complexes in Poland (Warsaw, Gdańsk, Szczecin, Lublin, Kołobrzeg, Mielno)