Property Funding Criteria and Transaction Requirements

Property Funding Criteria

Klean Capital publishes its property funding criteria so sponsors can self-assess before committing time to a submission. The criteria are not a scoring form; they are the questions an institutional investor will ask, set out plainly.

The asset

Commercial property is the focus: industrial, logistics, office, institutional and mixed-use assets, together with specialist and process-related buildings. The asset must have a defensible valuation basis, a clear title position and a use that remains lettable or saleable if the current occupier leaves. Location, specification, age and alternative use all feed the residual value assumption that underpins any facility.

The income

Where income exists, the lease is the security. Unexpired term, break structure, rent review mechanism, repairing obligations and the tenant’s covenant strength determine both how much can be raised and at what cost. Where income does not yet exist, a pre-let, forward sale or credible letting evidence is expected to stand in its place.

The sponsor

Track record matters more than scale. Klean Capital looks for sponsors who have delivered comparable schemes, who can evidence their equity contribution, and whose corporate structure, accounts and ownership withstand due diligence. A sponsor team with the relevant technical and commercial depth will clear credit faster than a larger balance sheet with no sector history.

The structure and the exit

Private equity, debt, mezzanine and PPP funding are combined case-by-case, so the criteria are applied to the proposed structure as a whole. Every transaction must carry a defined exit: investment sale, term refinance, sale and leaseback, or a long-dated take-out via Private Placement Investment Grade Bonds placed with institutional investors. A proposal without a credible exit will not proceed, regardless of asset quality.

Clean-technology and process assets

Klean Capital also funds new game-changing clean technologies — waste-to-energy and energy-from-waste, resource recovery, wind and solar. Where a property transaction carries a process or energy component, the technology is assessed on its own merits: proven performance, feedstock or offtake security, permitting, and realistic operating assumptions. Feasibility studies and due diligence support that assessment.

How to submit

Provide the asset and title detail, the tenancy schedule or pre-let position, the amount and purpose of the funding, the sponsor’s equity, and the intended exit with timing. Klean Capital responds on fit first. Since 1998 it has raised funding for over a hundred different transactions, and that experience is used to tell sponsors quickly whether a proposal is fundable as presented or what must change for it to become so.