INSIGHT: rate of interest on Intra-Group Loans for Real Estate Assets the End of Mezzanine Debt?

INSIGHT: rate of interest on Intra-Group Loans for Real Estate Assets the End of Mezzanine Debt?

Andrea Leho of Macfarlanes talks about two present choices because of the German and Luxembourg courts which rejected plans between relevant organizations to be able to get estate that is real, in the foundation they failed to conform with all the arms-length concept.

Funding is vital towards the estate sector that is real. After the economic crisis, lending from non-financial organizations and investors with shareholder loans has exploded. Simply because banking institutions, which formerly supplied quite a lot of financial obligation, have reduced their engagement. While loans from third-party non-financial organizations to property teams are by itself at hands size, shareholder loans (SHLs) aren’t, and need a transfer prices analysis.

Because of the trouble in obtaining outside capital, investors into the real estate business in many cases are reliant on SHLs to invest in property acquisitions. 继续阅读“INSIGHT: rate of interest on Intra-Group Loans for Real Estate Assets the End of Mezzanine Debt?”