Case Study: Swift Execution of a High-Return Madrid Property Transaction
At Onate, we understand that successful property investment depends on speed, certainty, and flexibility. Our bespoke lending solutions empower investors to seize opportunities that conventional financing simply can’t accommodate.
This case study highlights how Onate’s bridging finance offering enabled a real estate investor to swiftly execute a high-return transaction on a prime residential property in Madrid.
The Challenge
In December 2024, an experienced investor approached Onate with a time-sensitive opportunity. They held an exclusive purchase option on a sought-after residential asset in Madrid but needed immediate liquidity to exercise that option.
Critically, the investor had already negotiated an onward sale, making speed essential. Traditional lending timelines would not suffice.
Our Solution
Onate structured a bespoke bridging loan to meet the investor’s tight timeline and strategic goals.
Key terms of the loan included:
● 7 business days from agreement to execution
● 89% Loan-to-Cost (LTC), accommodating the investor’s capital limitations
● 3-month minimum interest period, aligned with the planned exit
● Zero exit fees, ensuring profit certainty and flexibility
The Outcome
The onward sale of the property was completed in February 2025, allowing the investor to realise a substantial net profit from the transaction.
This case study demonstrates how Onate’s tailored bridging finance solutions support investors to move decisively, realise their property’s potential, and achieve superior financial outcomes. By delivering fast, flexible capital, we help clients unlock opportunities beyond the constraints of traditional lenders.
If you're ready to explore new opportunities and need a financial partner who can rise to the challenge, contact Onate now:
Evelina Raykova - Commercial Director, Spain - evelina.raykova@onate.com (+34 619 94 47 51)
Javier Redondo - Senior Lending Manager, Spain - javier.redondo@onate.com (+34 634 209 095)
Hugh Lyons - Group Head of Credit & Spain - hugh@onate.com (+34 643 582 133)
Transactional Certainty: Onate's Key Advantage in Lending
In the world of property finance, certainty is everything. Borrowers, investors, and introducers need assurance that funding will be delivered as promised. At Onate, our commitment to transactional certainty sets us apart.
Uncertainty can disrupt property deals, but borrowers need a lender who follows through without delays or changes. At Onate, once we commit, we ensure a seamless path to completion.
How Onate Delivers Certainty
We have built our lending model around speed, flexibility, and reliability. Here’s how we ensure transactional certainty for our clients:
1. Clear & Transparent Decision-Making
From the outset, we provide quick, decisive responses. Our experienced team understands the nuances of property lending, allowing us to assess deals efficiently and communicate funding decisions promptly.
2. No Unnecessary Red Tape
Unlike traditional banks, our processes are designed for efficiency. We keep documentation requirements streamlined and decision-making direct, ensuring a smooth journey from enquiry to funding.
3. Strong Capital Base
Having a reliable funding structure means we are not dependent on external approvals once we commit to a loan. This independence ensures that when we say yes, it means yes.
4. Execution with Speed & Precision
Our transactions move quickly because we understand the time-sensitive nature of property deals. Whether it’s a debt settlement requiring urgent resolution or a property acquisition with a strict deadline, our team is prepared to act decisively.
5. Consistency in Terms & Pricing
We believe in honouring our agreements. There are no sudden rate changes, hidden conditions, or unexpected fees - what we agree at the outset is what we deliver.
Our introducers and borrowers value us not just for our competitive lending terms, but for the confidence that when Onate commits, the deal gets done. Transactional certainty is not just a promise - it’s the foundation of how we operate.
If you or your clients need a lender that delivers with certainty, speed, and flexibility, let’s talk.
Reach out to John Ring at john@onate.com / 087 830 5276, Michael Gavin at michael@onate.com / 085 145 4200 or Niall Hurson at niall@onate.com / 083 800 0227.
Team Tuesday: Meet our Portfolio Manager, James Garrigan
Where did you begin your career?
“I began my career working with Link Asset Services (now BCM Global) as a junior asset manager which gave me a great introduction to the property industry.
I met and dealt with excellent people there from whom I learnt plenty and many I’m still in contact with today.
I then joined LRC Group as an asset manager working on a large portfolio of both commercial and residential properties where I spent 4 years and gained valuable experience of the property industry from both an asset management & property management aspect.”
What is the best career advice you’ve ever been given?
“Always be willing to learn from those around you and aim to surround yourself with great people.
I’ve been lucky in my short career to date to have met some excellent individuals and worked as part of some fantastic teams which has enabled me to develop continuously as an individual and as part of a team.”
What tips would you give to someone starting in your profession?
“Build up a network, always try to help someone when the time arises and always treat everybody you encounter with honesty.
Never get carried away when things may appear to be going well as the property industry will often find a way to bring you back to ground as no two days are the same. ”
What is your greatest professional achievement to date?
“Successfully managing a portfolio of c. 2,000 properties nationwide as part of a small asset management team which included active property management, unlocking value throughout the portfolio through various value-add initiatives and assisting with the acquisition / sale of c. 100 properties within a 3-year period.”
Tell us something people may not know about you
“I’m a fluent Irish speaker having attended both primary and secondary “as Gaeilge”.
It’s a great privilege to be able to speak Irish and it’s great to see the language making a resurgence in recent times.”
Case Study: Unlocking the Potential of a Prime Dublin Property
At Onate, we know property investment demands speed, certainty, and flexibility. Our tailored lending solutions help investors seize opportunities that traditional financing may not support.
This case study highlights how Onate’s bridging finance enabled a borrower to transform a period property in central Dublin into a high-value rental asset.
In early 2024, experienced property promoters secured a three-storey over-basement period building in central Dublin for €1.4M. Previously a hostel, the property had strong potential but required significant refurbishment. Their goal was to renovate and reposition it as a high-yielding rental asset. The borrowers needed fast, flexible funding to move quickly, fund completion of renovations, and refinance the property.
Solution
Onate structured a bespoke bridging loan to support both the purchase and refurbishment of the property, ensuring the project could proceed without delays. This included:
· 75% Loan to Cost facility to support the purchase
· 12-month term, allowing time to carry out refurbishment works, achieve full tenant occupancy and refinance the property
· 100% funding for refurbishment works
· No exit fees and a minimum interest period of just 3 months
· Dedicated execution team ensuring the deal closed smoothly and on time
This structure allowed the borrowers to focus on enhancing the property’s value while minimising financial strain.
Outcome
The project was successfully completed within the 12-month term, resulting in:
· A fully refurbished and fully occupied rental property, generating €135K annual rental income
· A completed post-works valuation of €1.95M, reflecting the increased market value
· Allowing time for a refinancing process to conclude, transitioning the loan to a non-bank lender for long-term stability.
This case study highlights how Onate’s tailored bridging finance solutions empower investors to move quickly, add value, and achieve their financial goals. By providing fast, flexible capital, we help borrowers unlock the potential of their assets without the limitations of traditional lenders.
If you're ready to explore new opportunities and need a financial partner who can rise to the challenge, contact Onate now:
John Ring | john@onate.com 087 8305276, Michael Gavin | michael@onate.com 085 1454200, or Niall Hurson | niall@onate.com 083 8000227
Team Tuesday: Meet our Lending Analyst in Spain, Luis Guirao
Where did you begin your career?
“I actually studied mechanical engineering at the Polytechnic University of Madrid, so my first job out of college was as an engineer in a petroleum research company.
This role gave me a grounding in project execution, client interaction, and working as part of a team, all skills which also apply to working in bridging finance!”
What is the best career advice you’ve ever been given?
“The best career advice I’ve received is, “Choose a job you love, and you’ll never work a day in your life.”
This simple yet powerful phrase has served as a constant reminder for me to align my professional life with my passions and values.
It has kept me motivated through challenges and encouraged me to seek roles where I can continuously grow, contribute meaningfully, and remain engaged in my work every day.”
What tips would you give to someone starting in your profession?
“Although I’m relatively new to finance, my advice to newcomers would be to maintain a growth mindset and never stop learning.
The financial industry evolves rapidly, so staying adaptable and continuously expanding your knowledge is essential.
Equally important is seeking mentorship from experienced professionals who can offer guidance and insights. Building a network of trusted advisors and being open to feedback will help accelerate your career progression.”
What is your greatest professional achievement to date?
“My greatest professional achievement to date has been successfully transitioning from engineering to the financial sector.
This shift required me to quickly adapt to a new field, learn new skills, and demonstrate my ability to contribute effectively to a completely different environment.
I am particularly proud of the progress I’ve made in such a short time, having only joined Onate in February of 2024.”
Tell us something people may not know about you
“As a mechanical engineer, I have a strong passion for motorsports.
I often spend my weekends at the racetrack, refining my skills and pushing my bike to new limits.”
Case Study - €560,000 Equity Release in Dublin
Onate’s tailored approach to bridging finance shows the important role in enabling a borrower to release equity from their own properties, and take advantage of opportunities that would have previously only been available to cash buyers. Over the past four years, Onate has helped over 100 borrowers to achieve their goals. This case study highlights how an equity release can enable borrowers to take advantage of time sensitive transactions.
In May 2024, Onate was approached by an introducer who had a requirement for a borrower to release equity of an investment property in Dublin in order to purchase a new family home. The vendor of the property required a quick sale and were offering the property at a slightly discounted price if they could close on the house within 4 weeks. The borrowers had an unencumbered property that they were looking to sell in order to fund this transaction, but this would not be possible in such a short time frame.
Onate worked with the introducer and a term sheet was approved within 24 hours. As the investment property would be vacant and no income would be generated during this process Onate were able to offer an element of interest rollup. This meant that the gross loan was increased to cover the first six months of repayments. Onate’s flexibility allowed for a tailor made solution to suit the needs of the borrower in this particular transaction.
Once the borrower had reviewed the term sheet with the introducer and his solicitor a due diligence fee was paid. Onate scheduled an all party call with the introducer, Onate’s panel solicitor, and the underwriters. With the closing date for the new property only a few weeks away, it was important to outline all of the required items needed to drawdown the loan and identify who was responsible for each. Onate scheduled regular catch-up calls to ensure that momentum continued right up until drawdown.
A loan of €560,000 was drawn in June 2024 (44% LTV) and the borrower was able to secure his property at a discounted price. His own property was then put on the market in June and he was able to achieve a price in excess of the original guide price. If he had to push through the sale quickly to secure the other property, he would not have had the benefit of a full marketing campaign, and as a result, may not have achieved the maximum price for his own property.
If you're ready to explore new opportunities and need a financial partner who can rise to the challenge, contact Onate now:
Michael Gavin | michael@onate.com 0851454200, John Ring | john@onate.com 0878305276 Or Niall Hurson | niall@onate.com 0838000227
Team Tuesday: Meet our Accountant - Calvin Joyce
Where did you begin your career?
“My first job was in the local service station in Claremorris, many cold days were spent on the forecourt.
It was a great experience to engage with locals and understand how a business was run.
Following completion of my Accounting degree, I began my finance career with an alternative lender which was a great first step to gain vital experience in the world of finance.”
What is the best career advice you’ve ever been given?
“My best career advice I have been given is to find something you’re genuinely passionate about and pursue it relentlessly.
Surround yourself with mentors and build a strong network. Don’t be afraid to take risks and invest in your personal growth.
You don’t have to know everything, just be willing to learn and never be afraid to ask questions.
It’s a light-hearted reminder that in finance, staying curious and grounded is just as important as knowing the numbers.”
What tips would you give to someone starting in your profession?
“Pursuing a career in accounting can seem like a long road. It will be challenging, and no doubt you will encounter setbacks along the way. However, if you can find that little bit extra inside you to overcome these setbacks, you will be rewarded on the other side.
I would encourage anybody interested in a career in accounting to go for it as it will provide plenty of opportunities and open plenty of doors throughout your career.”
What is your greatest professional achievement to date?
“My greatest professional achievement to date was passing my professional accounting exams. I experienced setbacks along the way but was over the moon to get over the line in the end.
However, having joined Onate, and how early I am in my career, I expect there will be plenty of opportunities for greater professional achievements both individually and as part of a team and that is something I am working towards and continue to chase each day.”
Tell us something people may not know about you
“I am a big soccer fan. I play for my local club back home in Claremorris and I’m a massive Liverpool fan who likes to get across to games as much as possible.
I also enjoy running. I went over to Toulouse last week to do a half marathon but ended up doing the full marathon.
Considering the furthest I had ran before was 13k, it was not my brightest idea but I made it over the line...JUST!”
Case Study: Onate Finances Commercial Property Purchase in a Tipperary town
Onate takes pride in offering flexible financing solutions that help investors unlock the potential of their real estate investments.
In this case study, we outline the successful financing of a commercial property in a Tipperary town for €1,700,000. Onate provided a loan of €1,300,000, secured by the property being purchased and five residential investment properties valued at €800,000.
This strategic loan enabled the borrower to purchase the property and implement an asset management strategy to maximise its income. Upon completion of the strategy, the loan was refinanced with a long-term funding solution from another lender.
The borrower identified a great opportunity to acquire a commercial property in a regional town, priced at €1,700,000. With a clear plan to boost the property’s revenue through an asset management strategy, the borrower was well-positioned to maximise the property's value. However, they needed immediate financing to secure the deal without the property’s income being fully stabilised.
To facilitate this acquisition, Onate provided a €1,300,000 loan, helping the borrower close the purchase. Additionally, five residential investment properties, with a combined value of €800,000, were offered as security, allowing Onate to structure the loan in a way that worked for both parties.
Following the successful purchase, the borrower was able to move forward with their planned asset management strategy, designed to maximise the commercial property’s income potential. Key actions taken during this phase included:
Lease Optimisation: The borrower renegotiated and optimised existing lease agreements to increase rental income and create longer-term tenancies, boosting overall stability
Tenant Improvements: The borrower invested in minor renovations and improvements to attract new tenants for vacant units, resulting in increased occupancy rates and higher rent per square metre
Revenue Diversification: They also diversified the tenant mix, bringing in a range of tenants that complemented each other and added long-term value to the property. They were no longer reliant on one of the larger tenants for the majority of the rental income.
After the asset management strategy was successfully implemented, the property’s income-generating capacity significantly improved. With these enhanced cash flows in place, the borrower was able to refinance the loan with a different lender, securing a long-term funding solution.
Onate’s financing solutions played a pivotal role in enabling this borrower to capitalise on a prime investment opportunity. By advancing €1,300,000 and structuring the loan with additional security from residential properties, Onate helped the borrower secure and enhance a commercial asset, ultimately leading to a successful refinancing with another funder.
This case exemplifies Onate’s commitment to providing tailored financial products that meet the specific needs of real estate investors, empowering them to maximise value and achieve long-term success.
If you're ready to explore new opportunities and need a financial partner who can rise to the challenge, contact Onate now John Ring | john@onate.com | 0878305276, Michael Gavin | michael@onate.com | 0851454200 or Niall Hurson | niall@onate.com 083 800 0227
Team Tuesday: Meet our Lending Director - Niall Hurson
Where did you begin your career?
“ I started my career in Finance with Anglo Irish Bank. While it no longer exists, it was a huge learning experience for me.
I dealt with senior stakeholders and decision makers, all in a very fast paced environment at an early stage in my career, on all types of property deals.”
What is the best career advice you’ve ever been given?
“Get out and meet as many people as you can early in your career.
Build trust & credibility.
I’ve known many of my clients and introducers for many years. If you can’t do something for someone, do your best to direct them to someone who can.”
What tips would you give to someone starting in your profession?
“It’s easy to lend money, it’s harder to get it back.
Be prepared, and always make sure you present your self in the best light you can, whether that’s in a meeting, written or oral presentations - but if you don’t know the answer don’t spoof (at least not too much), you’ll be caught out!! ”
What is your greatest professional achievement to date?
“Managing three of the largest single property asset sales for Ulster Bank as part of their de-leverage post the global financial crisis.”
Tell us something people may not know about you
“My first job was in a completely different industry working in Telecoms with Ericsson in Ireland, Norway and Columbia before changing path and moving into finance.”
Fix and Flip of property at Onate
Fix and flip is a property investment strategy that involves purchasing properties, renovating them, and selling them for a profit. This approach can be highly lucrative if done correctly but also comes with its share of risks. Successful fix and flip projects require careful planning, a keen eye for potential, and a good understanding of the real estate market. At Onate, we have funded numerous Fix and Flip projects over the past number of years.
Why Fix and Flip?
Profit Potential: The primary motivation for fix and flip is the potential for high returns. Investors can make significant profits by purchasing undervalued properties, improving them, and selling at a higher price.
Market Demand: There is always a demand for well-renovated homes and investment properties, especially in areas of high rental demand. Home owners and investors are often willing to pay a premium to purchase newly refurbished properties.
Creative Outlet: For those with a passion for design and renovation, fix and flip offers a creative outlet to transform outdated or derelict properties back into the housing supply market.
Steps to a Successful Fix and Flip
Research and Planning
Market Analysis: Understand the local property market and look for comparable properties to understand values and be disciplined about the purchase of properties. Identify areas with high demand and potential for appreciation.
Budgeting: Determine your budget, including the purchase price, renovation costs, holding costs, and contingency funds
Financing: At Onate, we support these types of projects by providing up to 75% of the purchase price depending on the location and up to 100% of the refurbishment costs depending on the estimated completed value of the property.
Property Acquisition
Finding Properties: Look for properties through online property listings, property auctions (such as BIDX1), real estate agents and networking. Often off market transactions are where added value can be achieved. They are not for everyone, but there are promoters who will advertise locally for potential sellers, door knock and use leaflet drops to generate leads for properties.
Due Diligence: Conduct thorough inspections to assess the condition of the property and estimate renovation costs.
Renovation
Planning: Develop a detailed renovation plan, including timelines and cost estimates. Identify renovation projects that don’t require planning permission which can be costly and create time delays.
Hiring Contractors: Find reliable contractors with experience in renovation projects. Get multiple quotes and check references, recommendations are invaluable to help with identifying the right refurbishment/renovation partner.
Project Management: Oversee the renovation process, ensuring it stays on schedule and within budget.
Selling the Property
Staging and Marketing: Stage the property to enhance its appeal. Use professional photography and list the property on popular real estate platforms.
Pricing: Set a competitive price based on comparable sales in the area.
Negotiation and Closing: Be prepared to negotiate with buyers and navigate the closing process smoothly.
Common Challenges and How to Overcome Them
Underestimating Costs: Always add a buffer to your budget for unexpected expenses.
Overestimating Market Value: Use conservative estimates when determining the post completion work value of the property.
Delays in Renovation: Plan for potential delays and have a backup plan to mitigate them.
Tips for Success
Build a Strong Team: Surround yourself with reliable contractors, real estate agents, and financial advisors.
Stay Informed: Keep up with the property market trends and new renovation techniques.
Focus on High-ROI Improvements: Prioritise renovations that add the most value, such as kitchens, bathrooms, and curb appeal.
Network: Build relationships with other investors, contractors, and real estate professionals to find opportunities and gain insights.
Fix and flip can be a rewarding investment strategy when approached with careful planning and execution. By understanding the market, managing costs, and making smart renovation choices, you can turn undervalued properties into profitable investments. Whether you are a seasoned investor or just starting, the fix and flip market offers numerous opportunities to grow your wealth and increase the housing stock with properties that may be derelict for some time.
Contact Onate today if we can assist you with your Fix and Flip project.
Reach out to John Ring at john@onate.com / 087 830 5276, Michael Gavin at michael@onate.com / 085 145 4200 or Niall Hurson at niall@onate.com / 083 800 0227.
Case Study: Quick Financing for Residential Development in Cork
In late 2023, Onate provided a loan facility of €546,250 to assist a borrower in purchasing a site with full planning permission for multiple residential units in Cork. The borrower offered a residential investment property as collateral.
The borrower needed to secure the site rapidly in a competitive market, where timing was critical to success, and the sales process which had been lengthy, needed to conclude quickly.
Loan Facility: Onate provided 59% loan-to-value (LTV) financing, covering €546,250 of the purchase price
Collateral Security: The borrower backed the loan with a residential investment property, allowing a higher loan to cost for the borrower
Speed of Execution: Onate’s ability to act swiftly ensured that the borrower could secure the site and move forward with development plans without delay.
The loan was successfully redeemed in early 2024, demonstrating Onate's capability to deliver fast and effective financial solutions, enabling the borrower to capitalise on a prime development opportunity.
This case study highlights Onate's proficiency in providing tailored and timely financial solutions, essential for developers needing to act quickly in a competitive market.
If you need a financial partner who can respond quickly and effectively to your development needs, contact Onate today.
Reach out to John Ring at john@onate.com / 087 830 5276, Michael Gavin at michael@onate.com / 085 145 4200 or Niall Hurson at niall@onate.com / 083 800 0227.
Onate’s Guide to Commercial to Residential Conversion
Over the past number of years we have seen an increase in commercial properties being converted to residential spaces. This trend is particularly noticeable for properties that have been vacant for over two years, as a result of new planning exceptions aimed at bringing some much needed homes to the market and addressing the housing crisis. For property investors this can unlock potential opportunities.
For investors and developers, commercial to residential conversions can be attractive. Here are some key aspects to consider:
Cost Efficiency: Compared to ground-up construction, conversions can be more cost-effective. Existing structures reduce the need for extensive foundational work, and the timeline for completion is often shorter, leading to quicker returns on investment.
Government Incentives: The Irish government has introduced various incentives to encourage the development of residential properties. These include tax breaks, grants, and streamlined planning processes for conversion projects, making it financially appealing for investors.
Market Demand: The demand for residential properties in Dublin remains high, ensuring a robust market for newly converted apartments and homes. This demand provides a stable rental income and potential for property value appreciation.
Over the past number of years, Onate have worked with a number of borrowers on commercial to residential conversion projects.
Here’s an example of one particular project:
In September 2022, Onate closed a loan for a borrower for €300,000 to complete the purchase of property with a former pub on the ground floor, a residential element on the first floor and six self-contained units overhead. The promoter identified the opportunity and using his local knowledge of the area he was able to identify two potential exit strategies for the loan once the works were completed to convert the former pub to residential accommodation:
The promoter could sell the property to an approved housing body
The promoter had been approached by a letting agent who specialises in short term housing for tradespeople. As there were a number of large scale projects close by this would be a prime location for workers to live. The company was willing to sign a long-term lease with the promoter who would then refinance the loan with a pillar bank.
Once the loan had been drawn down and the property secured, the promoter immediately started the works on converting the former pub to residential accommodation and advised that the works would cost approximately €140,000 to complete. The promoter used his own funds to complete the works and the property was converted from a pub into two residential units.
The works were completed within 4 months and the promoter was able to repay the Onate loan within the 12 month term.
At Onate, we specialise in providing short term finance to property investors and property developers.
Whether you're considering a commercial to residential conversion or exploring other investment opportunities, our team is here to guide you every step of the way. Contact us today if you have an opportunity that you would like to discuss.
Team Tuesday: Meet our Case Manager - Nicky Hattingh
Where did you begin your career?
“I began my career in South Africa working as a Data Administrator in the support department for a company called Synchrospec.”
What is the best career advice you’ve ever been given?
“There are two powerful pieces of advice I have received from both my parents.
The first being, life is about people and we must learn to understand them and all work together in order to achieve a common goal.
The second piece of advice is to have a very strong work ethic and values to bring the best of you to an organisation in order to grow.”
What tips would you give to someone starting in your profession?
“Be detail oriented and embrace working with your team as the level of support achieved is incredible.
To love what you do is a big help.”
What is your greatest professional achievement to date?
“Having the opportunity to advance my career in Ireland with Onate. Previously working for 7 years in a bridging finance company in South Africa has given me the opportunity to grow my career abroad.
I have always enjoyed property lending and working in a team environment of which I am very proud to be a part of.”
Tell us something people may not know about you
“I received Cum Laude for my sporting achievements in high school.
I was recognised for my South African colours in softball, Provincial colours in indoor and outdoor cricket and school achievement in hockey.”
Case Study: €900,000 Property Purchase & Equity Release in Dublin
Onate has consistently provided loans to borrowers to purchase properties and to release equity. In some cases, a borrower will own an unencumbered property, which is a property that does not have any loan secured on it. They will then be able to release equity on this property and use the funds to purchase another property, or in the case below, to purchase two properties.
In July 2023, Onate was approached by a business owner who had identified and was sale agreed on two residential properties in Dublin. The promoter had received an approval in principal from another longer term lender but was advised that it would take a number of months to work through the due diligence and eventually, drawdown the loan. The promoter however, had secured a favourable deal for the properties on the basis that they were able to complete the transaction in weeks, and not in months.
Once the application was received by Onate’s lending manager and reviewed by the underwriting team, a term sheet was issued within 24 hours of the initial discussion with the borrower. A due diligence fee was then paid by the borrower. The following day an all party call was scheduled with the borrower, Onate’s panel solicitor, the borrowers solicitor and the underwriters. A detailed plan was put in place which outlined what needed to be done and who needed to complete each task.
Onate’s experienced underwriting team also compiled a “banana skin” list which identified any potential risks that would delay the transaction. Having been involved in over 100 transactions, they have seen many of the common factors that delay transactions. Onate have the ability to highlight these on day one. This is a key factor in getting a loan closed quickly.
The promoter owned a commercial property worth €500k in Dublin and had recently gone sale agreed on two residential properties worth €1m. The residential properties were in good condition and the borrower had tenants ready to move in once the loan was completed.
Onate approved a loan of €900k and the transaction was completed within 4 weeks of the due diligence fee being paid.
The promoter then refinanced the loan with a longer term lender within the 12 month term.
Onate's bridging finance solution showcases the pivotal role of tailored financial products to unlock the potential of someone's property portfolio. Onate’s commitment to deliver a fast yes or no and follow through with pace has helped over one hundred borrowers achieve their goals.
For those ready to explore new opportunities and in need of a financial partner, contact Michael Gavin at michael@onate.com / 085 145 4200 or John Ring at john@onate.com / 087 830 5276
The Property Market in Spain - An Overview
Spain is widely regarded as a desirable place to live due to its 300 plus days of sunshine per year, the average cost of living, the robust infrastructures, the low crime rate and the European legal security it offers. As such, it has historically been a favorable territory for population growth.
Currently boasting a population of 48 million, Spain is experiencing growth of approximately 600,000 citizens annually. A portion of this growth is attributed to natural population growth (23%) and a significant influx of permanent residency seekers from other countries. In 2023, there were 110,000 property sales to non-Spanish buyers out of a total of 600,000 registered transactions.
Population growth varies across the country, with the top five cities experiencing the most significant increases (between 2018 and 2021) being Madrid (173,000), Barcelona (105,000), Málaga (54,000), Valencia (41,000) and Murcia (39,000).
Spain's population is distributed across 26 million homes, with the Bank of Spain estimating that nearly four million of them are vacant, many of which are in rural regions like Asturias or Extremadura. Of the total number of homes, the National Statistics Institute (INE) estimates that half of them are over 40 years old, equating to almost 14 million homes that do not meet today's comfort and quality standards.
It is also important to highlight the increase in demand for housing due to a progressive trend towards the reduction of the average household size. In Spain, the average household size in 2023 stood at 2.5 inhabitants per household, lower if compared to 2.9 in 2001 or 3.6 in 1980. Still, it remains above the EU average of 2.2.
Despite this, only 25,000 requests for home renovation permits were filed in 2023, while new construction permits reached 110,000 units. This is below the average levels of the 1990s, with 350,000 annually, and the 2000s, with 500,000 permits per year.
Following widespread declines in property price values of up to 30% from 2008 to 2014, many areas have now surpassed their previous peak prices, albeit with stronger indicators. The average housing affordability ratio is currently 7.5x (Housing Price/Gross Household Income), with a mortgage affordability ratio of 39% and an average mortgage leverage of 62%. This is below the peak ratios of 9.5x, 55%, and 65%, respectively (reached in September 2007).
The rental market has seen significant growth, particularly in urban and tourist areas, with cumulative rent increases of up to 50% in Valencia or Estepona between 2015 and 2022. This surge in rents has led to increased demand for investment properties, further driving demand.
Overall, these factors have sustained the strength of the housing demand in Spain, which in turn is intertwined with the rigidity of the supply. This has been largely supported in recent years by stock rotation and replacement housing, primarily from the second-hand market, which has momentarily curbed price escalation.
In conclusion, Spain requires more housing in major urban areas and tourist zones to mitigate price increases. However, the recent modest trend in new housing production and the limited visibility on investments in urban land acquisition and development has prompted Onate to focus on providing financing to our clients for the purchase and renovation of the existing housing stock in Spain, which consists of 26 million homes.
For those ready to explore new opportunities in Spain, contact Juan Galobart at juan.g@onate.com
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Sources:
Bank of Spain (IIPP-2024-04-23-gavilan2-es-or.pdf (bde.es))
INE (https://www.ine.es/jaxiT3/Datos.htm?t=56937)
In the Media - Dan Gandesha in the Sunday Independent
Our CEO Dan Gandesha spoke to the Sunday Independent about his career story so far, Onate’s success and future plans.
Read the full article here
In the Media - Madrid Office Launch
Onate are delighted to have been featured across Spanish media announcing the launch of our Madrid office.
Read more here:
Case Study: Four Week Turnaround on Debt Settlement Loan
Onate has been providing loans to complete debt settlements with funds who can, in certain circumstances, offer discounts to borrowers on the basis that they are able to act quickly. For this and many other reasons, Onate has completed a significant amount of these loans over the last number of years.
In early 2023, a business owner approached Onate with a proposal to part-fund a debt settlement. The borrower engaged in negotiations with the fund for a number of months and had succeeded in negotiating a discount for himself, despite the property holding significant equity. One of the settlement conditions was that the loan was to be completed within four weeks of the agreement.
The borrower had banking facilities with a number of the pillar banks and had maintained an excellent relationship with them. When approached with the proposal to fund the loan, they advised him that they were interested in funding the deal but they would not be able to complete it in the required timeframe.
When the promoter approached Onate and highlighted the time pressure, the team in Onate acted quickly and provided a term sheet the very next day. Within the same week, a valuation was completed on the property and despite a slight delay receiving the title deeds, the loan was completed and drawn down within the four week timeline.
The loan was secured on a mixed use property with a petrol station and two residential properties. The valuation of the property was €1m and the loan amount was €265,000.
The borrower was able to refinance the loan on a longer term with one of the pillar banks.
This case study exemplifies Onate’s ability to complete a deal at speed. All decisions are made in house and as shown here, the team reacts to the specific needs of the borrower.
For those ready to explore new opportunities and in need of a financial partner, contact John Ring at john@onate.com / 087 830 5276 or Michael Gavin at michael@onate.com / 085 145 4200.