Refinance of €9million property portfolio in Paris

THE SCENARIO

As many recent reports have shown, Paris is seeing significant interest from international property investors at present. We have also seen a real uptick in finance enquiries for Paris, for both purchases and refinancing.

We recently received an enquiry from a client looking to refinance a property in France’s capital. This client was a French national and American resident, who was the chairman of a large and very successful American company. He was looking to refinance his two properties in Paris to generate liquidity.

The properties in questions had a total value of €9million, and he hoped to raise €5.5million across the properties. However, there were several complications. The first problem was his American residency. Although Paris has become a very popular spot of American investors, many private banks find it very difficult to deal with these cases because of the Internal Revenue Service (IRS), which makes tax complicated.

Another problem was that the loans were fast approaching maturity, so this client needed to refinance very quickly. Fortunately, after meeting with this client to understand his needs, I felt confident Enness International would be able to help.

OUR SOLUTION

I referred this case to the Enness International brokers in London, who were able to secure a rate of 1.9% on a 5-year fixed rate. This would be on an interest-only basis, and the client would only be required to bring €1million as assets under management (AUM). Working out at about 20% AUM, this was an exceptional result, as many clients of this profile would be required to place at least 35% AUM to secure lending.

This case was a prime example of what the Enness International team are able to achieve. Enness has a wealth of experience working with clients who are both nationals and residents of countries around the world; if you would like to know more, the team is happy to assist.

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