Task and Solution
The objective was to redeem the existing mortgages of the 5 apartment buildings in the total amount of CHF 13.7 million and to obtain an additional increase for further investments in properties. This was done under the above-mentioned parameters of the investor.
We were able to offer our client two convincing solutions, although the initial situation was challenging. Both variants provided financing at one institution, as requested. The first solution offered a fixed-rate mortgage of CHF 13.7 million with an additional increase of CHF 1.8 million over 5 years at 0.57%. The second offer included the redemption of the CHF 13.7 million with a Libor mortgage at 0.95% combined with an additional credit of CHF 4.6 million. Our client opted for the second option, as the increase of the mortgage by CHF 4.6 million was the decisive argument and much higher than expected. Thanks to this significant increase in the loan amount at attractive conditions, nothing prevents our client from making further investments.