01
A single lender
Senior and junior in the same structure: one contract, one security and one point of contact.
Integrated financing
Whole loan to finance acquisition and construction in a single structure
A single financing solution that replaces the combination of a bank senior loan and junior debt: land acquisition and construction under the same structure, with a single point of contact and tranches disbursed by milestone.
Analyze your project
We assess every deal case by case
- Single structure
- Acquisition + construction
- Milestone-based disbursement
- In tranches
- Amount
- From 7 M€
- Term
- By project phase
What is a whole loan
A single financing solution that covers the entire debt of a project, from land acquisition through to completion of construction, instead of combining a bank senior loan with a junior tranche from another provider.
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Higher leverage
Covers a larger share of total cost than a bank senior loan, with a single lender.
03
Acquisition and construction
Finances land acquisition and construction costs, with drawdowns against certification.
Also known as unitranche financing or stretched senior. The term whole loan is not translated.
How a whole loan works
Five stages, from land acquisition through to repayment with sales proceeds.
01
Acquisition
The first tranche finances the purchase of the land or building, secured by a mortgage.
02
Structuring
A single contract sets out the total amount, the drawdown schedule and the pricing.
03
Construction
Construction tranches are released against certification, as with a development loan.
04
Marketing
Sales or asset stabilisation proceed without any minimum pre-sales threshold.
05
Repayment
Upon delivery of the units or refinancing of the completed asset.
Whole loan versus senior plus junior
The usual alternative is two lenders, two contracts and an intercreditor agreement. A whole loan resolves this with a single lender.
Usual structure
Bank senior + junior
- Lenders
- Two or more
- Contracts
- One per tranche
- Security
- First and second mortgage
- Coordination
- Intercreditor agreement
- Total cost
- Sum of both tranches
Our proposal
Whole loan
- Lenders
- One
- Contracts
- One
- Security
- A single first mortgage
- Coordination
- Not required
- Total cost
- A single combined price
Xenia Capital finances exclusively professional transactions. The whole loan is designed for developers and companies, not for individuals.
Whole loan conditions
Whole loan conditions are set deal by deal: they depend on the asset, the developer, the phases covered and the agreed tranche structure.
- What it covers
- Acquisition and development
- Minimum amount
- 7.000.000 €
- Maximum amount
- Depending on the transaction
- Leverage
- Depending on structure
- Interest rate
- Depending on tranches
- Fees
- Depending on structure
- Term
- Depending on the project phases
- Interest payment
- Depending on tranches
- Disbursement
- Land at closing and construction by milestone
- Refinancing
- Existing debt included
How to read whole loan conditions
Four concepts that determine how much capital you can raise and what it really costs.
LTC
Loan to Cost
Percentage of the total project cost (land, construction and indirect costs) covered by the whole loan. The remainder is contributed as own equity.
LTGDV
Loan to Gross Development Value
Percentage of the gross value of the completed development represented by the debt. It acts as a second cap: the more restrictive of the two applies.
PIK
Payment In Kind
Interest and fees that are not paid in cash: they are capitalised and settled at maturity, with no cash outflows during construction.
Bullet
Payment at maturity
The principal and capitalised interest are repaid at the end, with sales proceeds or the refinancing of the completed asset.
When to use a whole loan
Five scenarios where a single structure solves more than two debt tranches.
01
Buying land and building with a single lender
When the transaction needs to finance both acquisition and construction, a whole loan avoids stacking a bridge loan, a bank senior loan and a junior tranche.
02
Replacing a bank pool plus junior debt
The cost and complexity of two lenders with an intercreditor agreement are replaced by a single contract and a single price.
03
Needing more leverage than a bank senior loan
When the bank only covers part of the cost and the developer does not want to, or cannot, contribute the rest as equity.
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Simplifying project execution
A single point of contact knows the project from start to finish and decides on changes and drawdowns without negotiating with third parties.
05
Repositioning an asset with major works
Purchase of a building and full refurbishment under a single financing, with exit by sale or refinancing.
Is your case different?
Tell us about the transaction and our investment team will assess whether it fits a whole loan or another of our products.
Whole loan or development loan
A development loan finances construction; a whole loan also finances the land purchase and increases leverage.
Already paid for the land and only need to finance construction? Then what you need is a development loan. And if the project doesn't have a licence yet, start with a bridge loan.
Whole loan versus bank financing
We don't compete with banks: we step in where they still cannot.
Reference
Traditional banking
- Decision criteria
- Risk policy and pre-sales
- Leverage on cost
- 50% – 60%
- Land purchase
- Outside the development loan
- Junior tranche
- From another provider
- Asset types accepted
- Standard residential
- Interest structure
- Periodic amortisation
- Uses up bank risk capacity
- Yes
Our proposal
Xenia's whole loan
- Decision criteria
- Viability of the asset and the developer
- Leverage on cost
- Higher than a bank senior loan
- Land purchase
- Included in the same structure
- Junior tranche
- Included: a single lender
- Asset types accepted
- Residential, hospitality, alternative living
- Interest structure
- Capitalised or at maturity
- Uses up bank risk capacity
- No
What assets we finance with a whole loan
Projects with acquisition and construction in Spain and Portugal.
Residential build-to-sell
Residential developments for sale, from land purchase through to handover.
Residential build-to-rent
Build-to-rent developments, with exit by refinancing once the asset is stabilised.
Hospitality
Hotels and aparthotels, new-build or full refurbishment, with a defined operator.
Alternative living
Coliving, student housing, flex living and serviced apartments.
Requirements for a whole loan
Financing acquisition and construction under a single structure means looking at the whole project: the team leading it, each of its phases and the security backing them.
The development team
Proven experience
Ability to manage a project's acquisition and construction from start to finish.
Relevant track record
Comparable projects already delivered, ideally including land purchase and construction within the same transaction.
Own equity contribution
Significant own funds relative to total cost, supporting the leverage of the single structure.
Solvent counterparties
Land seller, contractor, technical advisors and sales agents, identified and solvent.
The complete project
Clearly defined project
A business plan covering everything from purchase to exit, with budget and timeline by phase.
Viable financial structure
Tranches, leverage and returns consistent with the risk of each phase of the project.
Clear exit strategy
Sale of units, bank refinancing of the completed asset, or sale of the asset.
The asset and the security
Control over the asset
Land or building identified and under control through ownership, a deposit agreement or a purchase option.
Planning visibility
Approved zoning and a building licence granted or in progress, so the construction tranche can be released.
Transparency and reporting
Purchase, construction and sales information shared with Xenia throughout the life of the structure.
What we don't finance with a whole loan
A whole loan is a structure for professional acquisition and development projects. These transactions fall outside its scope and we won't be able to review them.
- Mortgages for individuals
- Moving primary residence
- Building one's own home
- Renovations of private homes
- Personal loans
- Non-real-estate assets
- Land and construction outside Spain and Portugal
- Structures below 7 M€
Documentation to apply for a whole loan
As the structure covers two phases, the initial information must cover both the purchase and the development. The more complete it is, the stronger the preliminary analysis.
01
Executive Summary
Summary of the project: asset or land to be acquired, planned construction, total amount by tranche and exit.
02
Financial information
Accounts of the project company, its shareholders and the guarantors, plus existing debt if being refinanced.
03
Valuation
Current value of the land or asset and the final value of the completed project, from an accredited valuer.
04
Planning information
Zoning, licence status and encumbrances, to size both the acquisition and the construction tranche.
05
Business Plan
Phase-by-phase plan: purchase, construction and marketing, with a timeline and budget for each tranche.
06
Developer's track record
Projects delivered by the team that include both acquisition and development.
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Financial model
Model with the financing tranches, disbursement milestones, stress scenarios and exit.
08
Registry status
Land registry extract and legal status of the land or asset that will secure the entire structure.
Whole loan application process
Six stages from receiving the project to disbursement of the acquisition tranche.
Step 01
Project submission
You send us the summary of the purchase, the planned construction, the phase-by-phase plan and the team's track record.
Executive summaryStep 02
Preliminary analysis
Our investment team assesses whether the purchase and construction fit into a single tranched structure.
Investment teamStep 03
Letter of intent
Total amount, tranches and their milestones, leverage, pricing, security and conditions precedent.
Term sheetStep 04
Due diligence
Valuation of the land and the project, legal, planning and technical review, and KYC/AML checks.
External advisorsStep 05
Investment committee
Approval of the complete project and the final tranche structure.
With OaktreeStep 06
Signing and land purchase
Signing before a notary and disbursement of the acquisition tranche; construction tranches follow, by milestone.
Notarial deed
Frequently asked questions about the whole loan
About integrated acquisition and construction financing in Spain and Portugal.
How does a whole loan differ from a development loan?
The development loan finances construction as a senior tranche. The whole loan covers all of the project's debt, senior and junior, in a single structure and with a single creditor.
How much capital can I obtain?
We work with tickets from €7 million upwards. The final amount depends on the asset, the business plan and the structure of the deal: each case is analysed individually.
What are the costs?
Interest rate, arrangement fee and formalization costs, detailed in the term sheet before signing. Each deal has its own terms: we do not work with a single flat rate.
What is the analysis process like?
It starts with a conversation about the project and the basic documentation: location, permits, budget and business plan. From there, the team analyses the deal with real estate judgement and proposes a financing structure. The pace is set by the quality of the information available and the complexity of each deal.
What documentation do you need?
A description of the project, its location and planning status, the cost budget, the sales or operating plan, and information about the development team. That is enough for an initial assessment.