While there is an oversupply of mortgages from various providers for residential real estate, in the commercial sector only the banks offer financing. Due to regulatory requirements, the financing level is usually limited to 50% LTV (loan to value), and this with conservative valuations.
Our credit offering is available for the following financing purposes:
We grant loans to borrowers domiciled in Switzerland to finance real estate in Switzerland. We focus on the commercial, industrial, and logistics sectors. Our loans are subordinated, secured by a promissory note, and typically cover an LTV of 10 - 20%, with the total LTV in the 70% range. A prerequisite for granting a loan is a positive due diligence, which also includes compliance with our ESG criteria.
The loan amount is in the range of CHF 1 - 30 Mio. and the term between 1 - 8 years. The loans are structured like a second mortgage, i.e. they are secured by a promissory note. We offer interest rates adapted to the project.
Credit applications undergo a four-stage process. During the pre-selection, we check whether the credit fulfills the investment restrictions. If this is the case, an in-depth analysis of the project and the definition of the credit terms follow. The investment committee approves the case, whereupon the loan agreement can be concluded.
The subordinated loans of Tavis Capital increase the return on equity of the investment. In addition, the equity thus released can be used for further projects or investments. Interest rates can be flexibly adjusted to the project.
