Financing

Qwoti adopts a debt-first financing strategy, using equity selectively to preserve flexibility, support growth, or address covenant/leverage constraints. The approach prioritizes institutional-grade lenders, active liability management, and capital structures that enable clear exit pathways for investors while optimizing risk-adjusted returns.

1. Debt-first discipline: maximize prudent senior secured financing to enhance levered equity returns while maintaining conservative covenant buffers.
2. Selective equity use: deploy equity for platform scaling, co-invest opportunities, or to acquire strategic assets where higher leverage is infeasible.
3. Alignment with institutional capital: offer SPV-level entry points, managed accounts, and co-invest structures that match investor liquidity and regulatory needs.
4. Liability management focus: active hedging, staggered maturities, and contingency liquidity to mitigate rate and refinancing risks.

• Senior Debt
  Primary layer
• Mezzanine / Preferred
  Supplementary layer
• Equity
  Residual layer

• Commercial banks with local Western European coverage
• Life insurance companies and pension-linked lenders for long-tenor, low-leverage financing
• Institutional debt funds and private credit providers for flexible structures and transitional assets
• Covered bond or Pfandbrief markets where applicable for core, high-quality collateral
• Capital markets via securitization/CMBS for portfolio-level refinancing
• Seller or developer financing for structured forward purchases or JVs

Qwoti sets conservative covenant buffers and models stress scenarios to ensure covenant headroom. Typical policy targets: LTV 55%–70% (asset-dependent), target DSCR ≥1.5x under base case and stressed scenarios, and minimum liquidity reserves at both SPV and holding levels. Covenant drafting prioritizes operational flexibility while protecting lender and investor interests.

1. Preference for fixed-rate debt for long-term core assets or use of swaps/caps to hedge floating exposure.
2. Hedge sizing to cover principal interest obligations for the investment horizon until anticipated refinancing events.
3. Regular mark-to-market and counterparty credit review for derivatives; maintain diversified hedging counterparties.

1. Ongoing lender relationship management and pre-qualification for refinancing at targeted DSCR/LTV levels.
2. Refinance to extract equity where value accretion supports higher LTVs and improved pricing.
3. Dividend recapitalizations for stable assets to return capital to equity investors while retaining ownership.
4. Portfolio securitization (CMBS) or covered bond issuance for aggregated stable-income pools to access capital markets.
5. SPV sale or portfolio sale as primary exit mechanics for institutional investors seeking liquidity.

Equity is deployed selectively: to participate in high-conviction value-adds, to fund platform scaling and technology, to meet lender-required equity cures, or to maintain covenant compliance. Qwoti structures equity tranches with clear governance, carried interest for management alignment, and co-invest options for large institutional partners.

• Core/Core+
  Financing impact
• Value-add
  Financing impact

1. Amortization profile aligned to cashflow: interest-only early to maximize cash yield; step-down amortization as asset stabilizes where appropriate.
2. Embedded prepayment and swap break cost planning to enable sale or refinancing without excessive friction.
3. Reserve accounts for capex, tenant improvement and tax/insurance escrows to smooth cashflow variability.
4. Cross-collateralization avoided unless portfolio-level financing is intentionally structured; prefer single-asset SPV isolation for clean exits.

Financing structures are optimized per jurisdiction to minimize transfer taxes, withholding, and inefficient VAT treatment. Qwoti engages local tax and legal advisers to implement tax-efficient acquisition vehicles (e.g., flow-through entities, intermediary holding structures) consistent with investor requirements and regulatory compliance.

Every financing package undergoes scenario analysis: interest-rate shock (+200 bps), vacancy stress (10–20% depending on sector), rent reversion sensitivity, and cap-rate expansion. Solutions include covenant buffers, additional equity cures, contingency liquidity lines, and lender diversification to mitigate single-counterparty risk.

1. Monthly cash reporting and covenant monitoring at SPV level.
2. Quarterly financials, annual audited accounts, and investor dashboards with loan-level terms and hedging positions.
3. Proactive covenant reporting and early-warning communication for covenant trajectories approaching thresholds.

1. Pre-marketing to preferred lenders during exclusivity to align term expectations.
2. Parallel credit approval runs with multiple lenders to reduce execution risk and obtain competitive terms.
3. Standardized loan documentation templates negotiated in advance where feasible to accelerate closings.
4. Bridge facilities arranged for rapid closings, followed by term-out to institutional lenders within agreed timelines.

As portfolio scale increases, Qwoti will evaluate securitization, covered bonds, or private placement bond issuance to access broader capital market liquidity and lengthen maturities. These pathways create institutional exit routes for equity investors and diversify funding sources beyond bank and private credit markets.

1. Clear disclosure of any affiliated-lender or related-party financing.
2. Independent valuation and approval processes for financing terms that materially affect investor returns.
3. Governance thresholds requiring investor or advisory board consent for leverage excursions or material recapitalizations.

• Average LTV across portfolio
• Weighted average debt maturity
• Portfolio DSCR (actual and stress-tested)
• Hedged percentage of floating-rate exposure
• Refinancing success rate and cost of debt trends

Institutional lenders or co-investors interested in partnering with Qwoti may contact us via the mailboxed listed bellow. Provide an institutional profile, mandate constraints (e.g., minimum return, permitted leverage, jurisdictional limits), and sample commitment sizes to enable tailored financing structures.

• General Enquiries [email protected]
• Financing [email protected]