Making Good Investments
A company was looking to buy a block of townhouses and apartments beside a third level institution in Ireland.
Students had occupied the block since it was built 12 years ago and it was never unoccupied. Student rental contracts are a rolling lease agreement and cannot be seen as guaranteed income. However common sense would tell you that as long as the University is in situ that this would be a good investment. The rental yields more than cover the loan repayments. Glenigo financed the project of €925,000 giving this company the opportunity to purchase the property and develop their company. The student accommodation currently has a waiting list for the next 3 years, which gives investors peace of mind on their investment.
Refinancing Options Available
A company in Dublin, which is also a family business, have been tenants in their premises for 25 years.
They refinanced their property during the Celtic Tiger years and missed a couple of repayments on their loan during the recession. Their existing lender is looking for full repayment but giving a debt write down. Their credit rating has been tarnished as a result of the missed payment. Therefore traditional lenders will not lend to them.
In the past three years they have a very healthy balance sheet so Glenigo secured funding of €650,000 to allow the company to pay off the bank.