Case Study: Bridging Finance of €915k provided in MidWest

Debt Settlement loan for seven properties

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Onate provided bridging loans for €915,000

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16 day closing achieved

In Q4 2021, Onate was presented with the prospect of providing a bridging loan to finance a debt settlement from a fund which had purchased legacy debt. This related to a portfolio of properties in various locations across the Midwest and Dublin owned by a professional. The portfolio comprised seven five residential investment properties and two offices valued at €1.8m.

The main consideration the borrower had when selecting their lender was speed of execution. It was essential that the fund received the debt settlement amount by an agreed date in the near future.

Onate issued its Approval in Principle (AIP) within 24 hours. As soon as the borrower returned the signed AIP along with the Due Diligence fee, Onate moved quickly to have the portfolio valued, and to have the legal title for all  seven properties reviewed by our legal team.

This was a challenging undertaking due to the number of properties involved and their diverse locations. However, despite the tight deadline, Onate were able to ensure that the settlement funds were issue within 16 days of terms being agreed.

Onate’s bridging loan of €915,000 facilitated the borrower in settling with the fund, gaining full control of the portfolio, and executing a phased sales strategy of the portfolio.

Over the following six months, the borrower sold five of the properties and redeemed their debt in full. This bridging loan from Onate allowed them to retain the two properties that are core to their business.