Our ImmoSchuldschein – an attractive investment alternative in a low interest rate environment
The ImmoSchuldschein represents a combination of a classic promissory note and syndicated loan together with security provided by land charge. This construction gives savings banks a low-risk attractive investment alternative, especially in times of low interest rates. In addition, it also enables them to participate in large-volume commercial real estate financing deals to diversify the risks in their own portfolios.
The typical issuer of the ImmoSchuldschein is a well-established real estate company which has a real estate portfolio in Germany, focuses on portfolio management and has an excellent credit rating.
Berlin Hyp retains a share of over 50 % of the loan during the entire term, holds the entire subsequent ranking and takes on all the servicing for the savings banks. The lending process is predominantly standardised. Prior to signing, interested savings banks can inspect and check all loan information such as ratings of market value reports in an electronic data room. The product is tailored to the investment needs of the Savings Banks Finance Group and remains in this circle. There is no provision for an early return, but it is possible to pass the product on to other savings banks.