Real Estate Finance

The Spanish real estate market has historically been dominated by bank financing and equity investments.

Bridge loans offer a good alternative financial structure to permit real estate companies to answer short term and quick liquidity needs. Bridge financing only started growing in Spain following the 2008 crisis and the damage it brought to traditional banks.

Since 2015, when Frux and a few other players entered the market, this option became increasingly popular as traditional financing was still recovering from the previous crisis, making bank finance more difficult to attain.

Bridge financing provided a good alternative solution since it is more flexible than traditional bank financing and better tailored for quick short-term needs.

Today, the Spanish real estate market still finds itself in a situation where liquidity is in short supply from traditional lenders. Companies such as Frux Capital are capable of assisting small and medium-sized real estate developers with financing solutions that cover an immediate need for liquidity are an important resource. Clearly, bridge loans represent an ideal alternative for temporary situations that require a capital injection.

Frux Capital finances real estate projects that have a clear future. This means that in terms of leverage, Frux treads cautiously performing in-depth analysis of the project in question, making sure that the bank can enter, or the loan exit can be completed through the sale of the asset.

Real Estate projects commonly financed include:

    • Residential Projects

      • Urban plots, refurbishment, construction etc.
      • Viable real estate projects in locations with over 100,000 inhabitants.
      • Experienced sponsors with a proven track record.
    • Commercial Projects

      • Hotels, Offices, Commercial Centres, Retail, logistics, student housing, senior living and other.
      • Refinancing, acquisition, repositioning, debt cancellations.