LINUS Digital Finance and LOANLAND have jointly facilitated a mezzanine loan in the high single-digit million-euro range to support the financing of residential properties in Berlin. These properties consist of a restored historic building ensemble exclusively located in Berlin-Charlottenburg, alongside a newly constructed property in Berlin-Mitte. These properties, nearly fully occupied, encompass a total rental area of over 4,000m2 and showcase top-tier amenities.
The provided mezzanine loan effectively releases the sponsor's equity, enabling them to seize attractive investment opportunities in the current market environment. Notably, this financing marks the second successful club deal between LINUS Digital Finance and LOANLAND.
Dr. Daniel Schmidt, CEO of LOANLAND, commented, "Especially in light of the current market turmoil, the market for traditional Mezzanine financing has dried up to a certain extent. In this context, the cooperation of alternative financiers is gaining increasing strategic importance. This transaction shows that the right deals can still be financed via intelligent capital structuring."
Lucas Boventer, Co-CEO of LINUS Digital Finance, highlighted, "Despite the complexities of the current market, we remain committed to identifying and structuring compelling financing opportunities with attractive risk-return profiles for our broad investor base. Our continued partnership with LOANLAND reflects our dedication to fostering and expanding meaningful B2B relationships. The LINUS Digital Finance tranche of the mezzanine loan was oversubscribed, highlighting the continued demand for attractive real estate investments among private investors and the effectiveness of our digital platform."
The transaction was successfully closed in August 2023.