Securing financing for a real estate project with commercial leasing
Challenge
A private investor had purchased a plot of land in a strategically attractive location in the city, where he planned to build a commercial property of about 3,000 m².
The goal is to rent the building to several long-term tenants (offices, medical, service sectors). However, the project lacked own funds, so there was a need to attract bank or investor financing. For this to be possible, a professionally prepared business plan and a clear financial structure were necessary.
Solution to the Problem
We engaged as financial consultants, responsible for justifying the project's figures and presenting them to the sponsors:
• We prepared a detailed business plan, including financial forecasts for a 10-year period
• We created a rental income model, based on market prices and expected occupancy
• We assessed the capital needs and formulated a logical capital structure (own resources + loan)
• We prepared a funding application for the bank, providing accurate figures, a cash flow model, and a sensitivity analysis
Results
✔ The bank approved funding for 60% of the project value
✔ Preliminary rental agreements were signed with 2 main tenants during the construction phase
✔ The client received a clear financial plan with potential profitability scenarios
✔ Gained tools to manage the project financially from inception to operational start
✔ The project became a foundation for other real estate investment plans
Client Insight
„I had an idea, but I didn't have a clear plan. With the structure, the figures, and the trust of the financiers – everything moved forward. Without such preparation, the bank wouldn’t have even spoken.“
– Private Investor