Commercial Real Estate Gap Financing in Africa
Close funding shortfalls with institutional capital. Financely arranges senior stretch, mezzanine, and preferred equity for construction, lease-up, and refinance events across key African markets.
What Gap Financing Solves
Gap financing fills the difference between committed senior debt and total project cost or purchase price. Sponsors use it to reach completion when costs move, to bridge to stabilization before a refinance, or to meet equity thresholds without over-dilution. Funding is structured against credible collateral, clear cash flow, and enforceable security.
Who We Serve
- Developers and sponsors with bankable track records
- Family offices and local RE groups seeking scale
- International sponsors partnering with local operators
Asset Focus
- Logistics, warehousing, and industrial
- Data centers and mission-critical assets
- Retail repositioning and mixed-use
- Hospitality with clear demand drivers
- Residential for rent and student housing
Where We Operate
| Country |
Primary Cities |
Notes |
| South Africa |
Johannesburg, Cape Town, Durban |
Active private credit, strong enforcement, institutional buyers |
| Kenya |
Nairobi |
Demand for logistics and data-linked assets |
| Nigeria |
Lagos, Abuja |
Sponsor strength and FX planning are key |
| Morocco |
Casablanca, Rabat |
Industrial and export-oriented assets |
| Egypt |
Cairo, Alexandria |
Scale projects with phased structures |
Terms Snapshot
| Instrument |
Typical Size |
Tenor |
Advance |
Pricing |
| Senior Stretch |
USD 5m to 50m |
2 to 5 years |
Up to 70 percent LTC |
Market margin plus fees |
| Mezzanine |
USD 3m to 30m |
2 to 4 years |
Up to 85 percent LTC combined |
Coupon plus profit share where applicable |
| Preferred Equity |
USD 2m to 25m |
3 to 6 years |
Project and sponsor dependent |
Preferred return with waterfall |
All terms are indicative and subject to credit, legal, and market conditions.
Underwriting Requirements
- SPV structure, clean cap table, and sponsor KYC
- Feasibility study, project budget, and independent QS where relevant
- Appraisal or valuation support and clear exit strategy
- Leases, pre-lets, MOUs, or demand evidence to support DSCR at stabilization
- Registered security, step-in rights, and enforceable pledges
- Currency framework and hedging plan where cash flows are in local currency
Our Process
1. Screening
Share a summary, model, and documents. We confirm fit and lender appetite.
2. Term Sheet
Indicative terms with structure, covenants, and timetable.
3. Diligence
Legal, technical, and credit review with clear conditions precedent.
4. Closing
Documents executed, funds scheduled, and drawdown mechanics agreed.
Frequently Asked Questions
How is pricing set
Risk, tenor, leverage, currency, and sponsor strength. We run a competitive process across lenders to achieve market terms.
Can gap capital fund land only
Only with clear permits, a development plan, and a near-term path to construction funding.
What DSCR do lenders expect at stabilization
Target ranges typically 1.20x to 1.35x depending on asset and jurisdiction.
Can funding be in USD or EUR while rents are local
Yes if there is a hedging plan or partial hard-currency income. Otherwise local-currency lines may be required.
Request Gap Financing Terms
Send your project summary, budget, timeline, and collateral plan. We respond with structure options and a closing checklist.
Start Your Gap Financing Process
Financely Group acts as an arranger through regulated partners. All engagements are subject to KYC, AML, sanctions screening, legal and technical diligence, and approval by lending counterparties. Nothing here is a commitment to fund.