The Structure
How the deal is built
Buy the company that owns the villas, inherit the existing debt of approx. €13M.
Negotiate the equity down against the bank's own appraisal.
Refinance immediately as the new owner, at better rates the current owner cannot access.
The Math
€5M in. Here is what comes out.
| Exit value | Equity in | ROE |
|---|---|---|
| €20M | €5M | +40% |
| €24M | €5M | +120% |
| €29.9M | €5M | +238% |
Exit values are the bank's own appraisal band. Debt assumed at approx. €13M, refinanced post-acquisition.
The Logic
Three reasons, no story needed
Entry discount
Equity negotiated 40% below the ECO-certified bank appraisal. The margin of safety is baked into the price on day one.
Refinancing unlock
The current owner cannot refinance. A new owner can, immediately, lowering the carrying cost from the first month.
Rental income
All four villas are available for rental during the hold period. Rental income offsets debt service while you position the exit.
The Assets
Four villas. One appraisal.
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