Case Study: Bridging Finance of €435k provided in North West

Four incomplete residential properties

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Onate provided bridging finance of €435K

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Shortage of residential properties fulfilled 

In mid 2021, a financial advisor introduced Onate to the prospect of financing a debt settlement from a fund which had purchased legacy debt relating to four incomplete residential properties. The properties are situated in the North West of Ireland.

The properties were originally built during the Celtic Tiger era, but were never fully completed.  The four properties, in a completed state, were valued at circa €965K. However there were a number of issues to resolve in order to realise this value. 

These issues included access, works to be completed and connection issues to services. Due to these issues, the fund which purchased the debt came to a settlement with the borrowers to purchase the properties for €400K. 

In parallel to this, the borrowers had been finishing the properties and resolving the connection issues with the services. Due to works recommencing on the property, this generated local interest in purchasing the properties by owner occupiers.

Onate stepped in and provided the bridging finance of €435K in order to allow the borrowers exit the position with the fund, gain full control of the properties and execute a sale process over a six month period. The properties were then valued at the original €965K.

This brought four new unfinished residential properties to the market. These properties were purchased by local families to help fulfill the shortage of residential properties in the area.