Bridging Loans Germany

Bridging Loans Germany: Zwischenfinanzierung and Short-Term Finance from €500,000

Page last reviewed: October 2026.

Bridging loans in Germany, known locally as Zwischenfinanzierung, provide short-term finance against German logistics, residential, office and hospitality assets, development sites and portfolios. We arrange German bridging facilities from €500,000 up to €500m+ for developers, institutional investors, funds, family offices and corporate borrowers, whether they are based in Germany or overseas. Larger requirements can be arranged as syndicated lending with multiple lenders, on request. This is unregulated commercial lending, not finance for buying a home to live in.

German Bridging Loans at a Glance

A Bank-Led Market With Room for Specialists

German property finance is dominated by banks that lend on amortising terms, assessed on a borrower’s ability to service debt, rather than on a sale or refinance twelve months out. Bridging does exist, but it is slower and structured differently from the UK model, and not every bank offers it. That leaves space for international and private lenders to fund short-term, exit-led deals that fall outside a bank’s standard process, particularly for sponsors without a long German track record or for transactions on a tight timetable.

Where German Bridging Is Used

• Acquiring logistics, residential or office assets on a timetable that a bank mortgage process cannot meet.
• Repositioning and conversion, where an asset needs work before it can attract term debt.
• Refinancing a maturing loan when a replacement bank facility is still in credit approval.
• Portfolio acquisitions by funds and family offices, sometimes through a syndicate of lenders.
• Site purchases ahead of development funding. See our Germany development finance page.

Asset Classes in the German Market

• Logistics and industrial: distribution centres, warehouses and light industrial units, supported by e-commerce and supply-chain demand.
• Residential portfolios and blocks, including build-to-rent, micro-living, co-living, student housing and senior living.
• Offices and commercial buildings, particularly modern, energy-efficient space in the larger cities.
• Retail and mixed-use property with identifiable tenants or clear repositioning plans.
• Hotels, serviced apartments, leisure and holiday parks, usually with an operator.
• Development land and conversion projects.

Security, the Notary and the Land Register

The borrower is normally a German company that owns the asset. The lender takes a first-ranking land charge (Grundschuld), executed before a notary and entered in the land register, and commonly a pledge over the shares in the borrower, an assignment of rents where the asset is let, and a sponsor guarantee. German notaries play a central role in property transactions and security, and the process runs on a scheduled timetable rather than an exchange of documents.

• Real estate transfer tax: applies to acquisitions, and share deals have their own rules, so structure and tax advice matter early.
• Tenancy and rent regulation: affects income assumptions for residential assets in some cities.
• Energy performance: affects value and saleability, particularly for offices and residential blocks.

Valuation and the Lending Value

German lenders often work from a conservative mortgage lending value, known as the Beleihungswert, that sits below market value, and apply their gearing to that figure. A bridge sized at 60% of lending value can therefore be a noticeably smaller share of the purchase price. Test the lender’s likely valuation before committing to a price, and build a margin into your own numbers.

Exit Strategies Lenders Accept in Germany

• Sale of the asset, evidenced by agent appraisals and comparable transactions.
• Refinance onto a German bank or institutional term loan once the asset is stabilised.
• Institutional take-out, particularly for residential portfolios, logistics and operational assets.
• Development finance, where the bridge secures a site funded for construction.

Bridging Across the Big Seven and Beyond

We arrange bridging against assets across Germany. Lenders assess the asset, the location and the exit, but most enquiries concern the seven largest cities, plus logistics hubs elsewhere.

• The big seven: Berlin, Munich, Hamburg, Frankfurt, Cologne, Stuttgart and Düsseldorf.
• Other major cities: Leipzig, Dresden, Nuremberg, Hanover and Bremen.
• Logistics corridors: distribution hubs around the main motorway and port connections.

Bridging Loans by City and Region: Where We Cover in Germany

We arrange bridging loans against assets across Germany. The cities below are where most enquiries come from, though we will look at any well-structured asset.

• The big seven: bridging loans in Berlin, Munich, Hamburg, Frankfurt, Cologne, Stuttgart and Düsseldorf.
• Other major cities: Leipzig, Dresden, Nuremberg, Hanover, Bremen, Essen and Dortmund.
• Surrounding regions: commuter and logistics areas around the larger cities, including Potsdam, Bonn and Augsburg.

If your asset is not listed, send us the details anyway. Lenders assess the asset, the location and the exit rather than a fixed list of places.

A Worked Example

The figures below are illustrative only and do not represent an offer or a real case.

A fund agrees to acquire a logistics portfolio for €60,000,000. The lender’s valuation, on a conservative lending value basis, comes in at €48,000,000. At 65% of that lending value, the facility is €31,200,000, which is 52% of the purchase price. The balance of €28,800,000, plus costs, is funded from equity. The exit is a refinance onto a term facility once the leases have been extended.

This shows why the lender’s valuation basis, not the headline price, sets the facility on German deals.

Costs, Rates and Terms

Pricing varies with the lender, the asset, the gearing and the exit, and is usually quoted per month. As a general guide only:

• Interest: for strong assets and sponsors, monthly pricing often starts at around 0.9% a month, rising for higher gearing, secondary assets or less certain exits. Interest is usually retained or rolled up.
• Arrangement fee: typically around 1% to 2% of the facility, with some lenders also charging an exit fee.
• Third-party costs: valuation, notary and registration fees, and legal costs on both sides.
• Term: usually 3 to 24 months.

Any figures we give for your deal will come from live lender feedback, not from this page.

From First Call to Completion in Germany

1. Initial summary. You send us the asset, borrower, amount, term and exit.
2. Lender approach. We approach lenders active in your asset class. With a complete summary, indicative terms can often come back within days.
3. Due diligence. The lender instructs a valuer and German lawyers, who review the land register, leases and structure.
4. Documentation. The facility, land charge, share pledge and guarantees are agreed, and the land charge is executed before a notary.
5. Registration and completion. The land charge is registered and funds are released.

Allow around six to twelve weeks on most deals, with valuation and the notarial timetable setting the pace. Syndicated facilities take longer.

Common Reasons German Bridges Stall

• Valuation on a lending-value basis coming in below expectations.
• Tax and structure questions that are not resolved before signing.
• Incomplete ownership paperwork on overseas structures.
• An exit that is hoped for rather than evidenced.

How We Can Help

We start with a conversation about the asset, the structure and the exit, so we can tell you quickly whether German bridging fits and what a realistic facility looks like. We then approach lenders active in your asset class, help you present the case the way they need to see it, and stay involved through valuation, notarial steps and completion. Our international bridging loans overview explains how the six markets fit together.

Frequently Asked Questions

Can German developers and investors use specialist bridging, or is it only for international borrowers?
Both. German sponsors use specialist lenders when they need more speed or flexibility than a bank will give, and international borrowers are equally welcome. The loan is normally made to a German company owned locally or from overseas.

What is the minimum loan size?
We arrange German bridging facilities from €500,000.

What is the maximum?
Up to €500m+, with syndicated lending with multiple lenders available on request for larger requirements.

Is this the same as a Zwischenfinanzierung for a family home?
No. Consumer home-mover bridging is a regulated bank product. This is commercial lending for companies and professional investors, secured on investment, commercial or development property.

How much can I borrow against the property?
Typically 50% to 65% of the lender’s valuation, which is often a conservative lending value below market value.

How long is the term?
Typically 3 to 24 months.

Is interest paid monthly?
Usually it is retained or rolled up, though some lenders accept serviced interest.

Will I need to give a guarantee?
Lenders commonly ask for a guarantee from the sponsor or a group company. Terms vary by lender and deal.

Can I borrow in a currency other than euro?
German facilities are normally in euro. Any currency hedging is a matter to discuss with your own advisers.

How is the broker paid?
How we are paid, and any fees, are confirmed to you in writing before you proceed.

Is this regulated lending?
No. This is unregulated lending, arranged for business purposes, so it is not regulated by the Financial Conduct Authority.

Bridging Loans in Other Countries

We also arrange bridging finance across Europe, including Ireland bridging loans, Spain bridging loans, Italy bridging loans, Netherlands bridging loans and France bridging loans. If you need build funding after the bridge, see our Germany development finance page.

Tell us about the asset, the structure and the exit, and we will tell you what the German market is likely to offer.