Property One to offer subordinated mortgages
With Property One Investors AG, the Property One Group intends to arrange alternative financing solutions for real estate developers and investors in the future. The company has been licensed by FINMA as a manager of collective assets.
The addition of subordinated mortgages to traditional real estate financing is intended to create a new market segment for real estate professionals, Property One Group says. For project developers, subordinated mortgages are a "welcome addition to the financing structure," the company says. They would gain access to capital - even for partial or interim financing - and could also mortgage properties at a higher rate, thereby optimizing their use of equity. For investors, it opens up a regulated way to invest in mortgage-backed loans, it said.
Property One Investors intends to finance all types of use, such as residential, office, commercial, industrial, retail or special use, with the exception of owner-occupied residential property, but said the loans are only suitable for properties in Switzerland and borrowers domiciled in Switzerland.
Demand for alternative financing solutions is expected to increase in general as established providers become more restrictive due to regulatory requirements, among other things, creating a growing gap in the professional real estate financing market, the company said. The company said it has been issuing subordinated debt for several years based on private placements. (ah)
