Sourcing and selection
An operation on Lend starts well before it appears on the platform. Our deal flow brings us several dozen projects each month through sources with access to institutional property deals. We select fewer than 5% of them.Much of that selection comes down to how we could recover the money if the original plan stopped working. Before looking at the expected return, we want to understand whether the property could be resold quickly, at a price that would cover investors’ capital and interest. That is an objective we assess carefully, rather than an outcome we can guarantee.Location matters because it affects both value and the pool of potential buyers. We examine local demand, the assumptions behind the proposed sale price and how long a sale could reasonably take. Our due diligence also looks for defects and constraints that could affect the property, alongside environmental data and exposure to climate risks. Each project goes through the same risk assessment framework. A projected return alone is never enough to get it through.
Legal structuring and bond issuance
Once a project has passed that review, we begin the legal and financial work needed to make it investable.We create a dedicated company, known as a special purpose vehicle or SPV, for the property and its operation. We prepare the documentation for the public offering and submit the relevant filings to the French financial markets authority, the AMF. Those filings form part of the regulatory process; they should not be read as an endorsement of the investment or a guarantee of its return.We then structure the bond issuance. Investors subscribe to bonds issued by the dedicated company within the Lend structure. We retain responsibility for the operation from acquisition through to repayment, rather than using Lend to distribute debt issued by an unrelated external operator. The obligations owed to investors sit with the issuer, under the terms set out in the bond documentation.
Fundraising and tokenization
The project can then open for funding on Lend. Investors can subscribe using fiat currency or USDC, and the bonds are tokenized as part of the issuance process.The project documentation explains what the funds will finance, how interest is calculated and what repayment depends on. Investors can review these terms before deciding whether to participate.
Transferring the funds to the SPV
After the raise closes, funds collected in USDC are converted into fiat through our partner brokers. Lend covers the conversion and transfer fees, and the proceeds are transferred to the SPV’s bank account for use in the operation.That account belongs to the SPV. Investors’ rights come from their bonds, which make them creditors of the company. On most Lend operations, there is no bank financing, and bondholders are the SPV’s only financing creditors. This means there is no bank loan ranking ahead of their bonds on those operations. The documentation for each offer sets out the precise creditor position and any applicable security.
Project monitoring and weekly interest
Once the property operation is underway, investors can follow its progress through the Project Update section on Lend. We publish regular reports on what has happened, how the project is progressing against its schedule and any developments that affect the expected outcome. If something changes, the reporting should explain what changed and what we are doing about it.Interest is distributed weekly, in fiat currency or stablecoins, according to the terms of the investment. Those payments are part of the operation’s ongoing cash flows. They do not remove the risks attached to the project or the eventual repayment of principal.
Repayment and completion
At the end of the operation, we repay investors’ principal under the bond terms. Where the investment includes a share of the project’s gain, any additional payment is calculated according to the agreed structure and the result actually achieved. Some operations are structured around interest alone; others also provide for participation in the upside.Once the amounts due have been settled, the investment is complete. The final reporting closes the account of what was financed, what happened during the operation and what investors received.
Our next operation
Our fourth operation is coming to Lend soon. If you would like to take a closer look, visit the project page for the property details, financing terms and investment documentation.https://app.lend.xyz/operation/operation-4-coming-soon