Financing Strategy
Real Estate Finance Is More Than Finding a Lender
Financing structures should fit the asset, sponsor, cash flow, transaction timeline and exit.
Published 18 September 2026 · KSCG - Keystone Capital Group
Financing must match the whole transaction
Real estate financing is rarely just about finding a lender. A financing structure only works when the debt fits the asset, the sponsor, the cash flow, the timeline and the exit.
At KSCG, we look beyond headline leverage and pricing to consider whether the complete financing solution is executable and aligned with the transaction.
Relevant sources of capital
Solutions may involve senior debt, bridge finance, development finance, commercial real estate finance, refinancing, acquisition finance and alternative capital.
Key credit considerations
The main considerations typically include loan-to-value, loan-to-cost, interest coverage, sponsor equity, pre-sales, debt-service capacity, security package and exit strategy.
Independent structuring, access to European lenders and a clear route to execution form the basis of the advisory approach.
Choosing between bridge and longer-term finance
Bridge finance may suit acquisitions or transitional assets where a defined event such as stabilisation, disposal or refinancing will repay the short-term facility. The key credit question is whether the event is realistic within the loan term.
Longer-term investment debt is normally assessed against sustainable property income, appropriate amortisation and refinance resilience. The lowest initial rate is not necessarily the lowest-cost executable solution after fees, covenants and exit costs.
How to compare lender terms
A meaningful comparison includes all-in financing cost, maximum leverage, minimum cash-equity requirement, conditions precedent, valuation assumptions, security and guarantees, drawdown rules, prepayment provisions and underwriting timetable.
For multi-jurisdictional transactions, local security enforceability, ownership structure and tax and legal considerations require specialist review.
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