One lender
One credit decision, one set of documents – no alignment between two houses on ranking and cash-flow waterfall.
Financing · Whole loan
Whole loan
A financing solution in which one lender covers a leverage range that goes beyond a classic senior-only tranche.
In a whole loan, a single lender provides debt across a leverage range that can extend beyond a classic senior-only tranche. For the borrower this means one counterparty, one set of documentation and one process. Whether and how the lender tranches internally or places parts onward depends on the individual house.
Compared with a combination of a senior loan and a separate junior tranche, the negotiation between two lenders as well as subordination and intercreditor arrangements between different houses fall away. Whether this route is economically preferable only becomes clear once total cost and drawdown conditions of both variants are compared.
Whole loan providers are mostly debt funds, specialist lenders and individual banks with their own real estate credit platform. We know their review grids and approach the houses whose mandate fits the asset and the business plan.
Suitable for
- Acquisitions with a short exclusivity period
- Value-add assets during refurbishment or repositioning
- Projects that are hard to fit into a classic bank grid
- Portfolios with heterogeneous assets
- Situations where two parallel credit processes would endanger the timetable
Key facts
- Mandate size
- from € 10m
- Structure
- one lender, one set of documentation
- Leverage range
- beyond a senior-only tranche
- Internal tranching
- depends on the lender
- Security
- e.g. land charge, share pledge
- First indication
- targeted within 48 hours
Benefits
Why this structure works
Extended leverage range
A whole loan can cover a range beyond a senior-only tranche without negotiating a separate junior tranche.
Leaner documentation
One facility agreement instead of parallel contracts with intercreditor terms, which reduces coordination effort.
Wider asset spectrum
Interim uses, vacancy and repositioning can also be considered by the relevant houses.
One price instead of layers
Remuneration is negotiated as a single overall condition and can be set against the senior-plus-junior alternative.
Refinancing perspective
Once stabilised, it can be assessed whether a refinancing with senior-ranking capital makes economic sense.
Process
How we proceed
- Step 01
Initial review
Asset, business plan and timeline are assessed for whole loan feasibility.
- Step 02
Lender selection
Approach to debt funds and lenders whose review grid fits the asset.
- Step 03
Indicative offers
Comparison of pricing, fees, drawdown conditions, amortisation and covenants.
- Step 04
Documentation
One facility agreement instead of parallel contracts – legal advice sits with your lawyers.
- Step 05
Closing & refinancing plan
Drawdown and early planning of the later refinancing.
From practice
What actually decides the deal
The comparison must be complete
A whole loan has to be compared with senior plus junior – including all fees, commitment interest, advisory cost and the time needed to align two houses. Only then can you judge which variant is preferable in the specific case.
What lenders review
The focus is on asset quality and location, business and cost plan, planning status and construction progress, letting or sales, the security package, the sponsor's own funds, track record and the exit or refinancing scenario.
Take drawdown conditions seriously
In construction-linked structures, drawdowns, monitoring and evidence requirements drive liquidity planning. These points belong in the term sheet, not in final documentation.
Settle prepayment early
Whole loan lenders regularly price minimum terms or minimum returns. If an early exit is realistic, the prepayment clause belongs in the first negotiation round.
Questions
What clients ask us most
The structures described are for general information. Availability, leverage, term, pricing, security and other terms depend on the asset, the borrower, the market environment and the specific financing. None of this constitutes a financing commitment.
Also relevant
Other building blocks
Most structures end up as a combination. These are the pieces we mix most often.
Is this the right structure for your project?
Send us your key figures — we respond with a reliable first assessment.