Netherlands-based Adelaer, an independent commercial real estate financing broker, has sealed an exclusive ‘white label’ deal with Germany’s FinLoop to utilise their €5B pan-European fintech platform in the Benelux countries.
The development is expected to accelerate the pace of digitalisation and international capital markets funding in Dutch property finance.
What does FinLoop offer?
FinLoop was founded in 2015 by Dr Thomas Schneider and Jordi Torra, real estate finance experts who are also enthusiastic about FinTech-PropTech development. The platform is a provider of integrated and flexible software solutions for the commercial real estate debt market.
FinLoop’s first product is an integrated software solution for securing, managing, and closing commercial property loans. The software package is an Oracle SaaS-based technology platform aimed at business-to-business property lenders and investors. Its intention is to save costs and time through digitalisation.
The software gives its clients access to an extensive lender database and optimises the debt transaction process including negotiation, closing, and managing loans. It also offers lenders and borrowers communication tools, dataroom and long-term data storage to highest regulatory standards in one software package.
Thomas Schneider says, “FinLoop has achieved rapid growth in the volumes of pan-European commercial property loans transacted over its platform since the start of 2021. This is partly due to the growing confidence of financial markets in using proven and secure fintech applications during the Covid-19 pandemic, but it is also a result of both real estate lenders and borrowers coming to the realisation that FinLoop reaches a far broader spectrum of closely matched counterparties; facilitates much faster deal closings and offers greater cost and loan processing efficiencies, than traditional bank and other funding channels. So far, no deal has gone unmatched among registered users of our platform.”
“We are also working on processing borrowers’ loan applications through ESG filters that will allow banks, alternative lenders and investors to select their counterparties on the basis of their climate and societal impact credentials alongside traditional financial risk metrics,” he added.
Aim of this deal
According to a statement from FinLoop, the volume of domestic bank loans for commercial real estate in the Netherlands has dropped 40 per cent since 2011 to around €60B in 2020. It was closer to €100B a decade ago.
In the wake of the Global Financial Crisis, Daan Reekers, Founder and Chief Commercial Officer at Adelaer, says, “The Dutch commercial real estate industry urgently needs a way to plug the growing financing gap left by the gradual withdrawal of traditional domestic bank financiers if we are meet the multiple challenges facing our cities, from the affordable housing crisis; to the retail transition and the decarbonisation of the built environment to tackle climate change.”
The retreat of the banks has created a widening funding gap, estimated by Adelaer at €3B a year, to finance development projects that are vital to future targets for the built environment in the Netherlands. These range from:
- The need to construct 1.0 million homes over the next 10 years to address the affordable housing crisis
- The transition to new uses of emptying retail properties on Dutch High Streets ravaged by competition from e-commerce and the Covid-19 pandemic
- The requirement to achieve the decarbonisation of the total real estate stock in cities by the EU’s ‘Green Deal’ deadline of 2050 through investment in carbon neutral refurbishments and developments in a sector that contributes around 35 per cent of the Netherlands’ carbon emissions
Daan Reekers adds, “Adelaer has signed an exclusive ‘white-label’ deal with FinLoop to utilise their pan-European fintech platform for the Benelux, because harnessing technology to achieve the digitalisation of the financing process is going to be the fastest and efficient way of increasing and diversifying sources of funding via the international capital markets. We believe the Adelaer-FinLoop platform could ultimately become the model for a future digital Dutch real estate bank, which is needed to anchor the financial stability and growth of the largest economic sector in the Netherlands.”
Adelaer is a financing and mediation boutique that offers creative contributions to financing solutions such as consultancy, mediation and supervising of finances for business customers. It also provides mediation services for the acquisition and sale of portfolios and mortgage portfolios, real estate and homes.
The company specialises in committing suppliers from outside the traditional channels such as pension funds, insurance companies, investment funds and international banks.
In addition, Adelaer also maintains an extensive network of real estate investors who, if desired, could invest in a project either during the development and construction phase or after realisation.
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