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Credit Tenant Lease Financing

For more than fifteen years, the Credit Tenant Lease Financing Group has been providing customised, long-term, fixed-rate credit tenant lease financing alternatives at competitive rates for tenants and owners around the globe.
Credit Tenant Lease (“CTL”) Financing is a method of financing real estate in which the landlord / owner borrows money to finance the development or purchase of a property and pledges as security rent to be received from the tenant and a mortgage on the property.

CTLs are hybrid financings consisting of elements of corporate finance and real estate finance, resulting in a long-term, highly leveraged, customised loan. Unlike a typical commercial real estate loan which is underwritten and sized based on the property value, CTLs are sized based on the underlying lessee’s credit rating, lease structure and rental payments.

Benefits of CTL financing via Pricoa Private Capital include:
  • Up to 100% LTV funding
  • DSCRs as low as 1.0x
  • Long-term commitments for 15-25+ years
  • Lower transaction costs by combining construction and permanent financing
  • Non-recourse owner financing
  • Quick response and fast turnaround, with no lender fees
  • Interest rates similar to investment grade debt pricing
  • Relationship-oriented approach in which our dedicated team oversees all aspects of the financing, from origination/structuring through lease expiration
With over US$7 billion invested in CTL financing since 2004, our team has the experience and know-how to help you determine if a CTL loan is the right fit for your project.

Learn more about CTL financing here.
Typical size
  • US$25 million - US$100+ million
  • Up to 100% loan-to-value
  • Proceeds based on present value of future rent payments under the lease
Typical uses
  • Financing for operationally essential assets
  • Capability to fund in local currency
  • Investment grade long-term, fixed-rate debt
  • Construction-to-permanent financing for corporate or government credit tenants
Structural characteristics
  • Sale/leaseback of corporate headquarters, office buildings, warehouses, distribution centers or retail stores
  • Maturities of up to 20+ years with custom amortisation schedules
  • Below investment grade on a case-by-case basis
  • Long-term fixed rate
Issuer benefits
  • Ability to receive capital and structure complex transactions for corporate and government credit tenants
  • One-stop-shop capability for construction-to-permanent financing
  • No requirement for agency rating
  • Quick and efficient execution
PARTNER STORY: LEASE FINANCING

New Balance:

Always moving in a greener direction

For more than 100 years, New Balance has striven to make the world move. Their new global headquarters would help them live that promise to keep pushing forward and commit to service within the Boston community. Lease Financing was an ideal way to secure funds for construction for their new LEED building.
Hear Their Story

“This building exemplifies the company’s long-held values and culture as well as its commitment to the local community. Our new headquarters is a space where our associates can thrive and the brand can continue to grow and fulfill its promise to push forward and deliver the best in innovative footwear and apparel.”

JIM HALLIDAY
Managing Director, NB Development Group
Portfolio Companies
We have an investment portfolio of US$5.0 billion in lease finance as of 31.12.20.
Meet the team
Elyssa McMullen
Senior Vice President
+1.973.802.6386
CTL FINANCING
Caity McLaughlin
Director
+1.973.367.5378
CTL FINANCING
Pricoa Private Capital (‘PPC’) is a trading name of PGIM, Inc. (‘PGIM’), the principal asset management business of Prudential Financial, Inc. ('PFI'), and it is also a trading name of PGIM Private Capital Limited and PGIM Private Capital (Ireland) Limited. In the United Kingdom, information is issued by PGIM Private Capital Limited with registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR. PGIM Private Capital Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom (Firm Reference Number 172071) and registered in England No. 1331817. In the European Economic Area (“EEA”), information is issued by PGIM Private Capital (Ireland) Limited with registered office: Pramerica Drive, Letterkenny Business and Technology Park, Letterkenny, Co Donegal, F92 W8CY, Ireland. PGIM Private Capital (Ireland) Limited is authorised and regulated by the Central Bank of Ireland and registered in Ireland under company number 635793 operating on the basis of a European passport. In certain EEA countries, information is, where permitted, presented by PGIM Private Capital Limited in reliance of provisions, exemptions or licenses available to PGIM Private Capital Limited under temporary permission arrangements following the exit of the United Kingdom from the European Union. These materials are issued by PGIM Private Capital Limited and/or PGIM Private Capital (Ireland) Limited to persons who are professional clients as defined  under the rules of the FCA and/or to persons who are professional clients as defined in the relevant local implementation of Directive 2014/65/EU (MiFID II).